Answered step by step
Verified Expert Solution
Question
1 Approved Answer
23. Information on four investment proposals is given below INFORMATION FOR FOUR POSSIBLE INVESTMENT PROPOSALS Proposal NumberInvestment Required Net Present Value 8,000 S 12,000 10,000
23. Information on four investment proposals is given below INFORMATION FOR FOUR POSSIBLE INVESTMENT PROPOSALS Proposal NumberInvestment Required Net Present Value 8,000 S 12,000 10,000 4,000 3,200 3,600 2.500 2,000 4 Rank the proposals in order of their preference using present value indexes. (a) 3,2,1.4 (b) 4, 1,2,3 (c) 2,3,1,4 (d) 3,1,2,4 Use the following information to answer Questions 24 and 25. Invermere Communications is considering whether to invest in a project that costs $450,000 and will return $105,000 after tax cash flows for each of the next seven years. After seven years they anticipate a salvage value of $10,000 (after taxes). 24 What is the after tax cash payback period? (a 5.1 years. (b) 4.3 years. (c) 0.2 years. (d) 7.0 years 25 What is the after tax cash payback reciprocal? (a) 29 (b) 45.00 (c) 0.23 (d) 0.10
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started