Question
1.Use the chart aboveto calculate the net present value of an investment whose initial cost is $11,500 and will generate an annual net cash flow
1.Use the chart aboveto calculate the net present value of an investment whose initial cost is $11,500 and will generate an annual net cash flow as shown below.
Year 1 = $2,000
Year 2 = $3,000
Year 3 = $7,000
Year 4 = $2,000
Year 5 = $2,500
Total Present Value =
Should the firm purchase the asset?_______Yes,_______No
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Project Management Accounting
Authors: Kevin R Callahan, Gary S Stetz, Lynne M Brooks
2nd Edition
1118078209, 9781118078204
