Question

Social Circle Publications Inc. is considering two new magazine products. The estimated net cash flows from each product are as follows:


Each product requires an investment of $ 125,000. A rate of 10% 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 each of the twoproducts.


$1.99
Sales19
Views523
Comments0
  • CreatedJune 27, 2014
  • Files Included
Post your question
5000