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Decision Making at Netflix Values: Option A: Initial Investment $2,000,000, Annual Cash Flow $500,000, Project Life 5 years Option B: Initial Investment $3,000,000, Annual Cash
Decision Making at Netflix
- Values:
- Option A: Initial Investment $2,000,000, Annual Cash Flow $500,000, Project Life 5 years
- Option B: Initial Investment $3,000,000, Annual Cash Flow $700,000, Project Life 4 years
- Requirements:
- Calculate the NPV and IRR for both options.
- Recommend the better investment based on NPV and IRR.
- Discuss the payback period for each investment option.
- Analyze the risk factors associated with each investment option.
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Financial Accounting
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel
10th edition
978-1119298229, 1119298229, 978-1119305828, 1119305829, 978-1119305736
