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Decision-Making with Relevant Costs at Amazon Values: Relevant Costs of New Project: $3,000,000 Expected Annual Cash Inflows: $1,000,000 Project Life: 5 years Discount Rate: 8%
Decision-Making with Relevant Costs at Amazon
- Values:
- Relevant Costs of New Project: $3,000,000
- Expected Annual Cash Inflows: $1,000,000
- Project Life: 5 years
- Discount Rate: 8%
- Requirements:
- Calculate the net present value (NPV) of the new project for Amazon.
- Determine the internal rate of return (IRR) and payback period.
- Discuss how relevant costs influence Amazon's capital budgeting decisions.
- Recommend whether Amazon should undertake the project based on financial analysis.
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Accounting
Authors: Charles T. Horngren, Walter T. Harrison Jr., M. Suzanne Oliv
9th Edition
130898414, 9780132997379, 978-0130898418, 132997371, 978-0132569309
