Question: A project costs $2,000 and is expected to last 2 years, producing income of $1,500 and $500 respectively. The cost of the project can be
A project costs $2,000 and is expected to last 2 years, producing income of $1,500 and $500 respectively. The cost of the project can be depreciated at $1,000 per year. Given a 10% required return, compare the NPV using cash flow to the NPV using accounting income Cash NPV =UUU+(1,SUU)/(1.1U)+3UU/(1.1U)=>
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