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whats is option 2 rate of return Multipliers: Yr 1 0909 Yr 2 0.826 Yr 3 0.751 Yr 4 0683 Yr 5 0.621 Option #
whats is option 2 rate of return
Multipliers: Yr 1 0909 Yr 2 0.826 Yr 3 0.751 Yr 4 0683 Yr 5 0.621 Option # Investment Yr Net Income from Operations Net Cash Flow Average Cash Rate Payback Period of Return (12% min) (3 years max) Cash Flow Present Value (10%) Net Present Value P.V. Index (>1.00) $ Option 1 $ 100,000 1 2 3 4 5,000 $ 15,000 5,000 $ 35,000 5,000 $ 60,000 5,000 $ 35,000 5.000 $15.000 25,000 $ 160,000 5 Totals $ 1 $ Option 2 $ 200,000 2 6,000 9,000 12.000 15,000 3 4 $ 100,000 70.000 30.000 25.000 25.000 $ 250,000 5 18.000 60,000 Totals $ Option 3 $ 300,000 1 $ 2 3 4 10,000 20,000 45,000 20,000 10,000 105,000 $ 65,000 70,000 75.000 80,000 5 Totals $ 85.000 $ 375,000 Step by Step Solution
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