Given the information in the table above and a 12.5 percent cost of capital (8 points),...
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Given the information in the table above and a 12.5 percent cost of capital (8 points), (a) compute the net present value. (b) based upon your answer in (a) should the project be accepted? Why or why not? (c) compute the internal rate of return. (d) based upon your answer in (c) should the project be accepted? Why or why not? $4,000 Operating Cash Inflows $3,000 $4,000 $11,000 (Initial outlay) $2,000 $1,500 Given the information in the table above and a 12.5 percent cost of capital (8 points), (a) compute the net present value. (b) based upon your answer in (a) should the project be accepted? Why or why not? (c) compute the internal rate of return. (d) based upon your answer in (c) should the project be accepted? Why or why not? $4,000 Operating Cash Inflows $3,000 $4,000 $11,000 (Initial outlay) $2,000 $1,500
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Answer rating: 100% (QA)
a Net Present Value NPV 11000 4000 1 125 4000 1 1252 3000 1 ... View the full answer
Related Book For
Project management the managerial process
ISBN: 978-0073403342
5th edition
Authors: Eric W Larson, Clifford F. Gray
Posted Date:
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