A project has estimated annual cash flows of $95,000 for four years and is estimated to cost $260,000. Assume a minimum acceptable rate of return of 12%. 1. Determine the net present value of the project (use 3 decimal places for the PV factor) 2. Determine the present value index, rounded to two decimal places. (use 3 decimal places for the PV factor)
A project has estimated annual cash flows of $95,000 for four years and is estimated to cost $260,000. Assume a minimum acceptable rate of return of 12%. 1. Determine the net present value of the project (use 3 decimal places for the PV factor) 2. Determine the present value index, rounded to two decimal places. (use 3 decimal places for the PV factor)
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
Section: Chapter Questions
Problem 3CMA
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A project has estimated annual cash flows of $95,000 for four years and is estimated to cost $260,000. Assume a minimum acceptable
1. Determine the
2. Determine the present value index, rounded to two decimal places. (use 3 decimal places for the PV factor)
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