Question: consider the following data: Flow for the next 4 yearswill be 200000,100000,-100000, and 200000,repectively. THE INITAL COST OF THE PROJECT WILL BE 300000, REQUIRED RETURN
consider the following data: Flow for the next 4 yearswill be 200000,100000,-100000, and 200000,repectively. THE INITAL COST OF THE PROJECT WILL BE 300000, REQUIRED RETURN IS 10%. FOR MAKING THE MOST ROBUST CAPITAL BUDGETING ANALYSIS, WHICH CRITERIA SHOULD BE USE?
NPV IRR Payback Rule AAR
A firm is considering a apital budgeting decision with a start up cost of 592386. this cost will bedepreciated over 3 years,depreciated straight line to zero. The net income for eaach of the three years is estimated at $16952, 46222 and 87999, respectively. what is the average accounting return?
11.3%
25.93%
16.78%
17.01%
13.58%
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