A project has estimated annual net cash flows of $ 12,200 for five years and is estimated
Question:
A project has estimated annual net cash flows of $ 12,200 for five years and is estimated to cost $ 39,800. Assume a minimum acceptable rate of return of 12%. Using Exhibit 2, determine
(1) The net present value of the project
(2) The present value index, rounded to two decimal places.
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at...
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A Net Present Value is the present value of net cash inflows ...View the full answer
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Related Book For
Financial and Managerial Accounting
ISBN: 978-1285078571
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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