Question: e) Calculate the NPV for this project by using the table below and recommend whether the project should be accepted and explain why? State two
e) Calculate the NPV for this project by using the table below and recommend whether the project should be accepted and explain why? State two disadvantages and two advantages of this capital budgeting method. NPV Calculation Year Cash Flow PVIF Present Value 1,300,000 1,181,830 0.9091 1,500,000 1,239,600 0.8264 1.200.000 901.560 0.7513 1,430,000 976,690 0.6830 2,000,000 1.241.800 0.6209 5,541,480 Total Initial investment (4.000.000) 1,541,480
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
