Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the below table to answer the following questions: 1. Compute the Net Present Value (NPV). (2 Marks) 2. Show when the Payback year

Use the below table to answer the following questions: 1. Compute the Net Present Value (NPV). (2 Marks) 2. Show when the Payback year will occur and justify your answer. (2 Marks) 3. Compute the ROI. (3 Marks) 4. Will you advise the Company to invest in this project and why? (2 Mark) Discount rate Costs Discount factor Discounted costs Benefits Discount factor Discounted benefits 11.00% - 0 22,500 1.00 22,500 0 1.00 0 Year 1 0 0.90 0 2 0 0.81 0 9500 0.90 31 0 0.73 0 Discounted benefits costs (22,500) 8,550 6,480 4,380 Cumulative benefits costs (22,500) (13,950) (7,470) (3,090) 4 Total 0.66 8000 6000 5500 0.81 0.73 0.66 8,550 6,480 4,380 3,630 23,040 0 22,500 3,630 540 540

Step by Step Solution

3.42 Rating (158 Votes )

There are 3 Steps involved in it

Step: 1

Sure I can help you with that Lets address each question based on the provided information 1 Compute ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Algebra

Authors: Michael Sullivan, Michael Sullivan III

11th Edition

0135226864, 9780135226865

More Books

Students also viewed these Accounting questions

Question

What are bounds and what do companies do with them?

Answered: 1 week ago