H Corporation is considering a new business development program that cost $700,000. Anticipated benefits are $60,000 in
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H Corporation is considering a new business development program that cost $700,000. Anticipated benefits are $60,000 in the first year, $160,000 in the second year, $265,000 in the third year, and $450,000 in the fourth year. Benefits will decline 9 percent a year after the fourth year, and will end after the twelfth year. Assume these benefits are received at year-end. The effective required return is 8 percent. What is the net present value of this training project and is this project attractive?
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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