The company has a project with a 5-year life, an initial investment of $170,000, and is expected to yield annual cash flows of $57,500. Whathat is the present value index of the project if the required rate of return is set at 6%? Present value index = Total present value of net cash flows Initial investment Calculation Steps Note: Round total present value of net cash flows and initial investment to nearest dollar. Round present value index to two decimal places. Present value index = $fill in the blank = fill in the blank $fill in the blank
The company has a project with a 5-year life, an initial investment of $170,000, and is expected to yield annual cash flows of $57,500. Whathat is the present value index of the project if the required rate of return is set at 6%? Present value index = Total present value of net cash flows Initial investment Calculation Steps Note: Round total present value of net cash flows and initial investment to nearest dollar. Round present value index to two decimal places. Present value index = $fill in the blank = fill in the blank $fill in the blank
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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The company has a project with a 5-year life, an initial investment of $170,000, and is expected to yield annual cash flows of $57,500. Whathat is the present value index of the project if the required
Present value index | = | Total present value of net cash flows |
Initial investment |
Calculation Steps
Note: Round total present value of net cash flows and initial investment to nearest dollar. Round present value index to two decimal places.
Present value index = | $fill in the blank | = fill in the blank |
$fill in the blank |
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