Question
Net present value = present value of cash inflows - present value Outflows = 2500*1/(1+10%)^1+1500*1/(1+10%)^2+1800*1/(1+10%)^3-4000 = $ 864.76 Answer = $ 864.76 Refer to the
Net present value = present value of cash inflows - present value Outflows
= 2500*1/(1+10%)^1+1500*1/(1+10%)^2+1800*1/(1+10%)^3-4000
= $ 864.76
Answer = $ 864.76
Refer to the problem given in Q9, use your analytical skills to estimate the profitability Index for each project.
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
17th Edition
1260247783, 978-1260247787
