Question
Using the following information calculate the following capital budget methods: 1. Payback 2. Accounting rate of Return 3. Net Present Value 4. Profitability Index 5.Internal
Using the following information calculate the following capital budget methods:
1. Payback
2. Accounting rate of Return
3. Net Present Value
4. Profitability Index
5.Internal Rate of Return
Cost of the Project: $750,000
Cash inflows:
Year 1 350,000
Year 2 325,000
Year 3 150,000
Year 4 180,000
The required rate of return for the investor is 8%
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Accounting For Managers Text And Cases
Authors: William J. Bruns
3rd Edition
0324291213, 978-0324291216
