Question
Assume that Riverbed Inc. has a capital budget of $212,000. In addition, it has the following projects for evaluation. Determine which project(s) should be chosen,
Assume that Riverbed Inc. has a capital budget of $212,000. In addition, it has the following projects for evaluation. Determine which project(s) should be chosen, assuming k is 12 percent. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to 2 decimal places e.g. 58,971.25.)
| Project | Initial CF | CF1 | CF2 | CF3 | |||||
| A | -100,500 | 80,500 | 79,500 | 0 | |||||
| B | -72,000 | 49,500 | 60,500 | 70,500 | |||||
| C | -111,500 | 54,500 | 100,500 | 80,500 |
| NPVAB | $ | ||
| NPVAC | $ | ||
| NPVBC | $ | ||
| Projects A alone Projects B alone Projects C alone Projects A & B Projects A & C Projects B & C should be chosen. | |||
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
