Question
The Kweller Company is considering two different capital investment projects with the following cash flows Commerce Sawdust Year 0 (20,000) (18,000) Year 1 8,000 4,000
The Kweller Company is considering two different capital investment projects with the following cash flows
| Commerce | Sawdust | ||
| Year 0 | (20,000) | (18,000) | |
| Year 1 | 8,000 | 4,000 | |
| Year 2 | 6,000 | 8,000 | |
| Year 3 | 4,000 | 6,000 | |
| Year 4 | 3,000 | 3,000 |
As needed, the company uses a 4% interest rate for capital investment decisions.
1. What is the cash payback period for Commerce? Round your final answer to two decimal places.
2. What is the net present value (NPV) for Sawdust? Round your final answer to the nearest whole dollar.
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Forensic And Investigative Accounting
Authors: Larry Crumbley, Lester E. Heitger, G. Stevenson Smith
4th Edition
0808021435, 9780808021438
