Question
Given: Discount rate = 25%; PV factor (lump sum 2 years, 25%)= .64 A $20,000 cash outflow to be made today. A $30,000 cash inflow
Given: Discount rate = 25%;
PV factor (lump sum 2 years, 25%)= .64
A $20,000 cash outflow to be made today.
A $30,000 cash inflow to be received at the end of 2 years.
A). Yes, NPV > -0-
B). No, NPV < -0-
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Cost Management Accounting And Control
Authors: Don R. Hansen, Maryanne M. Mowen
3rd Edition
0324002327, 978-0324002324
