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Year Cash Flow (A) Cash Flow (B) -S -$ 0 360,000 35,000 55,000 3 55,000 4 430,000 1234 2 45,000 23,000 21,000 18,500 13,600 Whichever project you choose, if any, you require a return of 14 percent on your Investment

Year Cash Flow (A) Cash Flow (B) -S -$ 0 360,000 35,000 55,000 3 55,000 4 430,000 1234 2 45,000 23,000 21,000 18,500 13,600 Whichever project you choose, if any, you require a return of 14 percent on your Investment

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 16EA: Project B cost $5,000 and will generate after-tax net cash inflows of $500 in year one, $1,200 in...
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Year Cash Flow (A) Cash Flow (B) -S -$ 0 -N3A 2 4 Whichever project you choose, if any, you require a return of 14 percent on your Investment. VITORL the Proie 360,000 35,000 55,000 55,000 430,000 PTVJOG 45,000 23,000 21,000 18,500 13,600 Che womezena 2 Shapem penou z Project A Project B If you apply the payback entenon, which investment will you choose? round b- What is the discounted payback perlod for each project? (Do not round Intermediate 1. calculations and round your answers to 2 decimal places, e.g., 32.16.) Answer is not complete. Discounted payback period 3.98 years years Mate
Transcribed Image Text:Year Cash Flow (A) Cash Flow (B) -S -$ 0 -N3A 2 4 Whichever project you choose, if any, you require a return of 14 percent on your Investment. VITORL the Proie 360,000 35,000 55,000 55,000 430,000 PTVJOG 45,000 23,000 21,000 18,500 13,600 Che womezena 2 Shapem penou z Project A Project B If you apply the payback entenon, which investment will you choose? round b- What is the discounted payback perlod for each project? (Do not round Intermediate 1. calculations and round your answers to 2 decimal places, e.g., 32.16.) Answer is not complete. Discounted payback period 3.98 years years Mate
d- What is the IRR for each project? (Do not round Intermediate calculations and enter 1. your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Project A Project B Answer is not complete. IRR 2. you apply the m Project A Project B Project Project % % e-1. What is the profitability Index for each project? (Do not round Intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) Answer is not complete. Profitability index wwwill you choose? 1.013
Transcribed Image Text:d- What is the IRR for each project? (Do not round Intermediate calculations and enter 1. your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Project A Project B Answer is not complete. IRR 2. you apply the m Project A Project B Project Project % % e-1. What is the profitability Index for each project? (Do not round Intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) Answer is not complete. Profitability index wwwill you choose? 1.013
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