Suppose your fiem is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 9 percent, and that the maximum allowable payback and discounted payback statistics for the project are 35 and 45 years, respectively. Time: Cash flow: -$5,100 $1,280 $2,480 $1,680 $1,680 $1,480 $1,280 Use the NPV decision rule to evaluate this project. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) NPV

Cornerstones of Cost Management (Cornerstones Series)
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Chapter19: Capital Investment
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Problem 22E
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Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of
this risk class is 9 percent, and that the maximum allowable payback and discounted payback statistics for the project are 35 and 45
years, respectively.
Time:
Cash flow:
2
4
-$5,100
$1,280
$2,48e
$1, 680
$1,680
$1,489
$1, 250
Use the NPV decision rule to evaluate this project. (Negative amount should be indicated by a minus sign. Do not round
intermediate calculations and round your final answer to 2 decimal places.)
NPV
Transcribed Image Text:Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 9 percent, and that the maximum allowable payback and discounted payback statistics for the project are 35 and 45 years, respectively. Time: Cash flow: 2 4 -$5,100 $1,280 $2,48e $1, 680 $1,680 $1,489 $1, 250 Use the NPV decision rule to evaluate this project. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) NPV
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