Question: > A Moving to another question will save this response. Question estion 9 Spits Consider a capital expenditure project to purchase and install new equipment
> A Moving to another question will save this response. Question estion 9 Spits Consider a capital expenditure project to purchase and install new equipment with an animal cash outlay of $20.000 the project is expected to generates after tax cash for chew of 18000 for ten years, and at the end of the project, a one-time after tax cash flow of $11,000 s expected. The firm weghed awirage cost of capital of 12 percent and easy back on projects of this type. Determine whether this project should be accepted or rejected using NOV Accept since NPV is $21.963.22 and is prester than zero Roject since NPV is-561.963.22 and is less than zero Accept since NPV-541.936.22 and is greater than zero Accept since NPV is $61.963.22 and is greater than sera None of the listed choices is correct Moving to another question will save this response Question 125 Gestion 9 5 points Consider a capital expenditure project to purchase and install new equipment with an inacash outlay or $20.000. The project is expected to generate net after tax cash flow each year of 56000 for ten years, and at the end of the project, a one-time after tax cash flow of $11.000 is expected. The firm has a weighted average cost of capital of 12 percent and requires a year packen projects of this type. Determine whether this project should be accepted or rejected using NPV. Accept since NPV is $21.963.22 and is greater than zero Reject since NPV is -561.963.22 and is less than zero Accept since NPV = $41.936.22 and is greater than zero Accept since NPV is $61.963.22 and is greater than zero None of the listed choices is correct
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
