The Hudson Corporation makes an Investment of $68,100 that provides the following cash flow: 1 2 3 Cash Flow $34,000 34,000 22,000 Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. What is the net present value at a discount rate of 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places.) Net present value b. What is the internal rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Internal rate of return c. Would you make the same decision under both parts a and b? Yes O No
The Hudson Corporation makes an Investment of $68,100 that provides the following cash flow: 1 2 3 Cash Flow $34,000 34,000 22,000 Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. What is the net present value at a discount rate of 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places.) Net present value b. What is the internal rate of return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Internal rate of return c. Would you make the same decision under both parts a and b? Yes O No
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
Section: Chapter Questions
Problem 3CMA
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Both appendixes are the same so I just attached 1 (b)
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