A company, which uses a MARR of 896, has been presented an investment opportunity that is summarized below, the standard notation for determining the Rate of Return for the proposed investment based on present worth is: year 1 3 4 Cash Flow $(440) $15 $35 $55 $75 $95 $115 $135 $155 (x1000) O 0- 440,000 - 15,000(P/A, 196, 8) – 20.000(P/G, 19%, 8) O None of them O 0 = -440,000 + 15,000(P/A, 196, 8) + 20,000(P/G, 196, 8) O 0 = -440,000 + 155,00O(P/A, 196, 8) - 20,000(P/G, 196, 8) O ROR = -440.000 + 15,000(P/A, 896, 8) + 20,000(P/G. 896, 8) O 0 - -440,000 + 15,000(P/A. 196, 8) + 20,000(P/G. 196, 7) O0-440,000 + 20.000(P/A, 196, 8) + 15,000(P/G, 196, 8)

A company, which uses a MARR of 896, has been presented an investment opportunity that is summarized below, the standard notation for determining the Rate of Return for the proposed investment based on present worth is: year 1 3 4 Cash Flow $(440) $15 $35 $55 $75 $95 $115 $135 $155 (x1000) O 0- 440,000 - 15,000(P/A, 196, 8) – 20.000(P/G, 19%, 8) O None of them O 0 = -440,000 + 15,000(P/A, 196, 8) + 20,000(P/G, 196, 8) O 0 = -440,000 + 155,00O(P/A, 196, 8) - 20,000(P/G, 196, 8) O ROR = -440.000 + 15,000(P/A, 896, 8) + 20,000(P/G. 896, 8) O 0 - -440,000 + 15,000(P/A. 196, 8) + 20,000(P/G. 196, 7) O0-440,000 + 20.000(P/A, 196, 8) + 15,000(P/G, 196, 8)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 11P

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