Question
A) ABC Service can purchase a new assembler for $15,052 that will provide an annual net cash flow of $6,000 per year for five years.
A)
ABC Service can purchase a new assembler for $15,052 that will provide an annual net cash flow of $6,000 per year for five years. Calculate the NP of the assembler if the required rate of return is 12%. Show calculation. Would you accept/reject a project based on NPV decision criteria?explain Why?
B)
Based on NPV calculated in part A, determine Profitability Index (PI). Show calculation. Would you accept/reject a project based on PI decision criteria? explain Why?
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Challenges And Impacts Of Religious Endowments On Global Economics And Finance
Authors: Buerhan Saiti , Adel Sarea
1st Edition
1799812456,1799812480
