Question

Celebration Apparel Inc. is considering two investment projects. The estimated net cash flows from each project are as follows:


Each project requires an investment of $ 750,000. A rate of 15% has been selected for the net present value analysis.

Instructions
1. Compute the following for each product: a. Cash payback period.
b. The net present value. Use the present value of $ 1 table appearing in this chapter (Exhibit 1).
2. Prepare a brief report advising management on the relative merits of eachproject.


$1.99
Sales34
Views511
Comments0
  • CreatedJune 27, 2014
  • Files Included
Post your question
5000