Question
Project 1 Project 2 Initial Year 1 $ 35,000 $ 35,000 Year 2 5,000 16,000 Year 3 16,000 23,000 Year 4 22,000 12,000 Year 5
|
| Project 1 | Project 2 |
| Initial Year 1 | $ 35,000 | $ 35,000 |
| Year 2 | 5,000 | 16,000 |
| Year 3 | 16,000 | 23,000 |
| Year 4 | 22,000 | 12,000 |
| Year 5 | (3,600) | 11,600 |
| Estimated scrap value | 5,000 | 5,000 |
Cost of capital 14%
Calculate:
- Payback period
- Average rate of return on initial investment
- Net present value
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Advanced Accounting
Authors: Debra C. Jeter, Paul Chaney
5th Edition
1118022297, 9781118214169, 9781118022290, 1118214161, 978-1118098615
