The Hudson Corporation makes an investment of $24,000 that provides the following cash flow: YearCash Flow 1
Question:
The Hudson Corporation makes an investment of $24,000 that provides the following cash flow:
YearCash Flow
1 .........$ 13,000
2 ......... 13,000
3 ......... 4,000
a. What is the net present value at an 8 percent discount rate?
b. What is the internal rate of return?
c. In this problem, would you make the same decision under both parts a and b?
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Hudson Corporation a Net Present Value Year Cash Flow 8 PV IF Present Value 1 13000 926 12038 2 1300...View the full answer
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Related Book For 
Foundations of Financial Management
ISBN: 978-1259194078
15th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
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