below Of the three projects which brings the shareholder's the most value using capital budgeting tools project
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below Of the three projects which brings the shareholder's the most value using capital budgeting tools
project A:
Net present value = Present value of cash inflows - Present value of cash outflows | $44,262,269 | NPV Formula: | $44,262,269 | |
Internal rate of return (IRR) | IRR: | 79.79% | ||
Payback period | 1.36 | |||
profitability Index (PI) + present value of cash inflows/ present value of cash outflows | 5.43 |
Project B:
Net Present Value = Present Value of cash inflows - Present Value of cash outflows | $22,259,712 | NPV Formula: | $22,259,712 | |
Internal rate of return | IRR: | 91.48% | ||
payback period | 1.14 | |||
Profitability Index (PI) | 3.78 |
Project C:
Net Present Value = Present Value of cash inflows - Present value of cash outflows | $33,470,904 | NPV Formula: | $33,470,904 | |
internal rate of return | IRR: | 90.36% | ||
Payback periodd | 1.23 | |||
Profitability Index (PI) = present value of cash inflows/ present value of cash outflows | 4.84 |
Related Book For
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 978-0134475585
16th edition
Authors: Srikant M. Datar, Madhav V. Rajan
Posted Date: