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Need Help with Managerial accounting class. 2 questions. E12-27A Calculate NPVequal annual cash inflows (Learning objective 4) Use the NPV method to determine whether Olde
Need Help with Managerial accounting class.
2 questions.
E12-27A Calculate NPVequal annual cash inflows (Learning objective 4) Use the NPV method to determine whether Olde West Products should invest in the following projects: Project A costs $290,000 and offers seven annual net cash inflows of $63,000. Olde West Products requires an annual return of 14% on projects like A. Project B costs $395,000 and offers ten annual net cash inflows of $71,000. Olde West Products demands an annual return of 10% on investments of this nature. Requirement What is the NPV of each project? What is the maximum acceptable price to pay for each project? E12-28A Calculate IRRequal cash inflows (Learning objective 4) Refer to Olde West Products in E12-27A. Compute the IRR of each project and use this information to identify the better investmentStep by Step Solution
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