67. (NPV; PI; IRR; Fisher rate) Scrooge Investments, which has a cost of capital of 12 percent,...

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67. (NPV; PI; IRR; Fisher rate) Scrooge Investments, which has a cost of capital of 12 percent, is evaluating two mutually exclusive projects (A and B), which have the following projections:

Project A Project B Investment $96,000 $160,000 After-tax cash flows $25,600 $30,400 Asset life 6 years 10 years

a. Determine the net present value, profitability index, and internal rate of return for Projects A and B.

b. Using the answers to part (a), which is the more acceptable project? Why?

c. What is the Fisher rate for the two projects?

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Cost Accounting Traditions And Innovations

ISBN: 9780324180909

5th Edition

Authors: Jesse T. Barfield, Cecily A. Raiborn, Michael R. Kinney

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Question Posted: Sep 19, 2024 04:03 AM

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67. (NPV; PI; IRR; Fisher rate) Scrooge Investments, which has a cost of capital of 12 percent,...

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Cost Accounting Traditions And Innovations

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