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Ibez Company is considering a project that requires an initial investment of $53,200 and will generate net cash flows of $16,800 per year for 5
Ibez Company is considering a project that requires an initial investment of $53,200 and will generate net cash flows of $16,800 per year for 5 years. Ibez requires a return of 10% on its investments. The present value factor of an annuity for 5 years at 10% is 3.7908. a. Compute the net present value of the project. b. Determine whether the project should be accepted or rejected on the basis of net present value. Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of the project. (Negative Net present value amounts should be indicated with a minus sign.) Years 1-6 Net present value Net Cash Flows Present Value of Annuity at 10% Present Value of Net Cash Flows Required B > Ibez Company is considering a project that requires an initial investment of $53,200 and will generate net cash flows of $16,800 per year for 5 years. Ibez requires a return of 10% on its investments. The present value factor of an annuity for 5 years at 10% is 3.7908. a. Compute the net present value of the project. b. Determine whether the project should be accepted or rejected on the basis of net present value. Complete this question by entering your answers in the tabs below. Required A Required B Determine whether the project should be accepted or rejected on the basis of net present value. Determine whether the project should be accepted or rejected on the basis of net present value
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