Acme Company is considering an investment in a project that has an internal rate of return...

 

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Acme Company is considering an investment in a project that has an internal rate of return of 20%. The project has an 8-year useful life but no salvage value. Net cash inflows from the project are expected to be $100,000 per year in each of the 8 years. Acme uses a 16% discount rate to make capital budgeting decisions. What is the net present value of this project? Round to the nearest whole dollar amount. Acme Company is considering an investment in a project that has an internal rate of return of 20%. The project has an 8-year useful life but no salvage value. Net cash inflows from the project are expected to be $100,000 per year in each of the 8 years. Acme uses a 16% discount rate to make capital budgeting decisions. What is the net present value of this project? Round to the nearest whole dollar amount.

Answer rating: 100% (QA)

To calculate the net present value NPV of the project we need to discount the net cash inflows from ... View the full answer