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Project 1 has a 7 year useful life. Project 2 has a 5 year useful life. company requires a 10% rate of return on its
Project 1 has a 7 year useful life. Project 2 has a 5 year useful life. company requires a 10% rate of return on its investments. compute the net present value of each potential investment.
| Annual Amounts | Project 1 | Project 2 |
| Sales of new products | $ 100,000.00 | $ 80,000.00 |
| Expenses | ||
| Materials, labor, and overhead (except depreciation) | $ 64,000.00 | $ 35,000.00 |
| Depreciation - Machinery | $ 20,000.00 | $ 18,000.00 |
| Selling, general, and administrative expenses | $ 8,000.00 | $ 20,000.00 |
| Income | $ 8,000.00 | $ 7,000.00 |
| Initial investment | $ 140,000.00 | $ 90,000.00 |
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The Next Step Advanced Medical Coding And Auditing 2013
Authors: Carol J. Buck MS CPC CCS-P
1st Edition
1455744859, 978-1455744855
