Management of Last Call Inc. is considering the following capital projects Assume that all projects have no

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Management of Last Call Inc. is considering the following capital projects

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Assume that all projects have no salvage value and that the company uses a discount rate of 10 percent. Management has decided that no more than \(\$ 6,000,000\) can be spent in the current year for capital projects.

a. Determine the net present value, profitability index, and internal rate of return for each of the six

b. Rank the six projects according to each method used in (a).

c. Indicate how you would suggest to the management of the company that the funds be spent.

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Cost Accounting Foundations And Evolutions

ISBN: 9781618533531

10th Edition

Authors: Amie Dragoo, Michael Kinney, Cecily Raiborn

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