A project has estimated annual net cash flows of 82 000 A project has estimated annual net cash flows of $82,000 for five years and is estimated to cost $259,000. Assume a minimum acceptable rate of return of 12%. Using Exhibit 2, determine (1) The net present value of the project and (2) The present value index, rounded to two decimal places. A project has estimated annual net cash flows of 82 000
A project has estimated annual net cash flows of 82 000 A project has estimated annual net cash flows of $82,000 for five years and is estimated to cost $259,000. Assume a minimum acceptable rate of return of 12%. Using Exhibit 2, determine (1) The net present value of the project and (2) The present value index, rounded to two decimal places. A project has estimated annual net cash flows of 82 000
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 3BE
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A project has estimated annual net cash flows of 82 000
A project has estimated annual net cash flows of $82,000 for five years and is estimated to cost $259,000. Assume a minimum acceptable rate of return of 12%. Using Exhibit 2, determine
(1) The net present value of the project and
(2) The present value index, rounded to two decimal places.
A project has estimated annual net cash flows of 82 000
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