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do both or you will not recieve a thumbs up! thanks Suppose your firm is considering investing in a project with the cash flows shown
do both or you will not recieve a thumbs up! thanks
Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 12 percent, and that the maximum allowable payback and discounted payback statistics for your company are 2.5 and 3.0 years, respectively, 0 Time: Cash flow: 1 2 3 5 -$362,000 $65,100 $83,300 $140,300 $121,300 $80,500 Use the NPV decision rule to evaluate this project. (Do not round intermediate calculations and round your final answer to 2 decimal places.) NPV Should it be accepted or rejected? accepted rejected Compute the payback statistic for Project A if the appropriate cost of capital is 7 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.) Project A Time: Cash flow: 0 -$1,400 1 $510 2 $600 3 $600 5 $180 $380 Payback years Should the project be accepted or rejected? accepted rejected Step by Step Solution
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