Question
A project that has been tested for its feasibility has already incurred market research costs of 50,000. The actual cost of the asset is 100,000
A project that has been tested for its feasibility has already incurred market research costs of 50,000. The actual cost of the asset is 100,000 and the project is expected to yield the following returns:
Year
Year 190,000
Year 2 80,000
Year 3 70,000
If the discount rate is 12%, what is the Net Present Value (NPV) of the project? Should the project be adopted?
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Managerial Accounting
Authors: Karen BraunWendy Tietz
3rd Edition
0132890542, 978-0132890540
