Question
1. Project x-ray is being considered for an expansion of current capabilities of the company given below is the necessary financial information to solve the
1. Project x-ray is being considered for an expansion of current capabilities of the company given below is the necessary financial information to solve the problem.
The initial investment is: $ 12,186
After Tax net cash inflows: $2,200
Discount Rate: 8%
Time of project 8 years
No Salvage Value is Projected
What is the net present value (NPV) of the investment?
should the project be considered? Justify your answer.
1B. Dalkey inc is considered an investment.
Given below Is the necessary financial information to solve the problem.
The initial investment is $94,678
yearly after tax net cash inflows. $14,110
time of project 9 years
no salvage value is projected
What is the internal rate of return (IRR) of the investment?
if the requires rate of return is 14% should this project be considered? Justify your answer.
If the required rate of return is 6% should this project be considered? Justify your answer.
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Answer Project XRay Analysis Net Present Value NPV We can use the NPV formula to determine the projects profitability NPV Initial Investment PVCash In...Get Instant Access to Expert-Tailored Solutions
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