(2) What is the book rate of return based on the average book value? (Round your answer to 2 decimal places.)
d. Project D costs $5,000 and will generate sales of $4,000 each year for 5 years. The cash expenditures will be $1,500 per year. The firm uses straight-line
(1) What is the accounting (book)
(2) What is the book rate of return based on the average book value? (Round your answer to 2 decimal places.)
Use the built-in NPV function in Excel to calculate the amounts for projects A through D. (Round your answers to the nearest whole dollar amount.)
e1. What is the NPV of project A? Assume that the firm requires a minimum after-tax return of 8% on investment.
e2. What is the NPV of project B? Assume that the firm requires a minimum after-tax return of 8% on investment.
e3. What is the NPV of project C? Assume that the firm requires a minimum after-tax return of 8% on investment.
e4. What is the NPV of project D? Assume that the firm requires a minimum after-tax return of 8% on investment.
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