Given the following regarding ABC corp. & XYZ corp.: ABC 2020 2021 2022 2023 Op Cash 50000 55000 60000 62000 Cap Ex 20000 21000 25000 26000 Dividends 10000 12000 13000 15000   XYZ 2020 2021 2022 2023 Op Cash 50000 55000 60000 62000 Cap Ex 5000 4000 2500 2000 Dividends 0 0 0 0   Required investment: ABC = $50,000, XYZ = $150,000. Discount rate = 4%

Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter5: Operating Activities: Purchases And Cash Payments
Section: Chapter Questions
Problem 2.1C
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Given the following regarding ABC corp. & XYZ corp.:

ABC 2020 2021 2022 2023
Op Cash 50000 55000 60000 62000
Cap Ex 20000 21000 25000 26000
Dividends 10000 12000 13000 15000

 

XYZ 2020 2021 2022 2023
Op Cash 50000 55000 60000 62000
Cap Ex 5000 4000 2500 2000
Dividends 0 0 0 0

 

Required investment: ABC = $50,000, XYZ = $150,000.

Discount rate = 4%

Find the dollar value of the discounted net return (NPV-Initial investment) on ABC

Please dont give images in answer thank you

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