Concept explainers
Net present value method is the method which is used to compare the initial
Present value index:
Present value index is a technique, which is used to rank the proposals of the business. It is used by the management when the business has more investment proposals, and limited fund.
The present value index is computed as follows:
To calculate: The net present value of the investment of DC Incorporation.
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Accounting, Chapters 1-13
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