Question
18. Calculate the net present value (NPV) for the following 20-year projects. Comment on the acceptability of each. Assume that the firm has an opportunity
18. Calculate the net present value (NPV) for the following 20-year projects. Comment on the acceptability of each. Assume that the firm has an opportunity cost of 14 percent.
a. Initial cash outlay is $15,000; cash inflows are $13,000 per year.
b. Initial cash outlay is $32,000; cash inflows are $4,000 per year.
c. Initial cash outlay is $50,000; cash inflows are $8,500 per year.
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MIS Management Information Systems
Authors: Hossein Bidgoli
8th edition
978-1337406932, 1337406937, 978-1337406925, 1337406929, 978-0357004357
