After analyzing a project economically, figures were obtained: initial investment, $310000; annual net profit of $130000 each year for five years; salvage value of assets at the end of the fifth year, $160000. years; salvage value of assets at the end of the fifth year, $160000. The The cash contributions for the initial investment were: shareholders $186,000, ARMR = 43%, bank A $62,000, bank B $62,000. the following 43%, bank A $62000, TMAR 45%; bank B $62000 of the investment with TMAR of 49%. Calculate NPV. a) -$33.39 b) -$34.33 c) -$39.33 d) N.A
After analyzing a project economically, figures were obtained: initial investment, $310000; annual net profit of $130000 each year for five years; salvage value of assets at the end of the fifth year, $160000. years; salvage value of assets at the end of the fifth year, $160000. The The cash contributions for the initial investment were: shareholders $186,000, ARMR = 43%, bank A $62,000, bank B $62,000. the following 43%, bank A $62000, TMAR 45%; bank B $62000 of the investment with TMAR of 49%. Calculate NPV. a) -$33.39 b) -$34.33 c) -$39.33 d) N.A
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 2CE
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