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Ford evaluates a project with an initial investment of $5,000,000, annual cash flows $1,200,000, project life 5 years, and discount rate 10%. Requirements: Calculate the
- Ford evaluates a project with an initial investment of $5,000,000, annual cash flows $1,200,000, project life 5 years, and discount rate 10%.
- Requirements:
- Calculate the net present value (NPV).
- Perform a sensitivity analysis on cash flows and discount rates.
- Prepare a recommendation report.
- Discuss risks and uncertainties associated with the investment.
- Requirements:
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Managerial Accounting for Managers
Authors: Eric Noreen, Peter Brewer, Ray Garrison
4th edition
1259578542, 978-1259578540
