The capitalized cost (CC) of the given project whose Cash Flow diagram is given below is closest to:j= 12% per year123789 1011A= $2,000A= $5,000PO=S50,000Capitalized Cost= ?O $-83,754$-78,145$-75,895O $-85,500O $-80,852

As per the cash flow diagram given above it is clear that 50000 is invested in zero period and 2000…

The capitalized cost (CC) of the given project whose Cash Flow diagram is given below is closest to: i= 12% per year 1 2 3 4 5 6 7 8 9 10 11 A= $2,000 A= $5,000 PO=550,000 Capitalized Cost= ? O $-83,754 O $-78,145

The capitalized cost (CC) of the given project whose Cash Flow diagram is given below is closest to: i= 12% per year 1 2 3 4 5 6 7 8 9 10 11 A= $2,000 A= $5,000 PO=550,000 Capitalized Cost= ? O $-83,754 O $-78,145

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 18EB: Garnette Corp is considering the purchase of a new machine that will cost $342,000 and provide the...

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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

The capitalized cost (CC) of the given project whose Cash Flow diagram is given below is closest to:
j= 12% per year
1
2
3
7
8
9 10
11
A= $2,000
A= $5,000
PO=S50,000
Capitalized Cost= ?
O $-83,754
$-78,145
$-75,895
O $-85,500
O $-80,852

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