ch brought E second char jlijs 35000 35000 50

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter9: Capital Budgeting Techniques
Section: Chapter Questions
Problem 12PROB
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19-7different methods of evaluating investment: proposals. Someone had an
amount of 60,000 $ Dollars, and he wanted to invest it. He had two opportunities,
each of which brought him the following streams :
second chance
0 0 350 دينار
First chance
0 0 180 دينار
18000
year
1
35000
15000
18000
3
15000
18000
4
18000
5
zero
The value of the Salvage is estimated to be 3000 $ Dollars for the first
opportunity and 2000 $ Dollars for the second opportunity.
Required: As a management accountant, you are asked to express an
opinion on investing the amount using the following methods:
1. The recovery period.
2. The accounting rate of return if you know that the straight-line
method is used.
3. The net present value, noting that the discount rate is 10%.
4. The internal rate of return on investment.
Transcribed Image Text:19-7different methods of evaluating investment: proposals. Someone had an amount of 60,000 $ Dollars, and he wanted to invest it. He had two opportunities, each of which brought him the following streams : second chance 0 0 350 دينار First chance 0 0 180 دينار 18000 year 1 35000 15000 18000 3 15000 18000 4 18000 5 zero The value of the Salvage is estimated to be 3000 $ Dollars for the first opportunity and 2000 $ Dollars for the second opportunity. Required: As a management accountant, you are asked to express an opinion on investing the amount using the following methods: 1. The recovery period. 2. The accounting rate of return if you know that the straight-line method is used. 3. The net present value, noting that the discount rate is 10%. 4. The internal rate of return on investment.
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