# Net present value method, internal rate of return method, and analysis The management of 1-leckel Communications Inc. is considering two capital investmentprojects. The estimated net cash flows from each project are as follows: The radio station requires an investment of $1,598800, while the TV station requiresan investment of$3,401,440. No residual value is expected from either project. Instructions Compute the following for each project: a. The net present value. Use a rate of 10% and the present value of an annuity of Si table appearing in this chapter. b. The present value index. Round to two decimal places.

### Survey of Accounting (Accounting I)

8th Edition
Carl Warren
Publisher: Cengage Learning
ISBN: 9781305961883

### Survey of Accounting (Accounting I)

8th Edition
Carl Warren
Publisher: Cengage Learning
ISBN: 9781305961883

#### Solutions

Chapter
Section
Chapter 15, Problem 15.4.1P
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