Question
If a potential investment has a NPV of -2,000, does that mean that the investment would generate a net loss? If the company has a
If a potential investment has a NPV of -2,000, does that mean that the investment would generate a net loss?
If the company has a hurdle rate of 10% would they accept the investment? Why or why not?
What is a disadvantage of the simple rate of return?
Shep Corp. is considering an 20 year investment with a net present value of cash flows of -$20,800 and an uncertain salvage value. What is the minimum salvage value the would make the investment attractive assuming a discount rate of 12% (20 year, 12% present value factor would be 0.104) See study guide
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