Question: The Present Values-unequal Lives Project 1 roguses an original investment of 45,000. The project will yield cash flows of $12.000 per year for five years.

 The Present Values-unequal Lives Project 1 roguses an original investment of
45,000. The project will yield cash flows of $12.000 per year for

The Present Values-unequal Lives Project 1 roguses an original investment of 45,000. The project will yield cash flows of $12.000 per year for five years. Project 2 has a calculated net present value of $13.900 over a three-year We project could be sold at the end of the years for a price of $50,000, Use the Present Value of $1 at Compound Interest and the Present Value of an Amulty of St at Compound Interest tables shown below. Present Value of $1 at Compound Interest Year 10 124 15% 209 1 0.043 9,870 0.833 2 0.000 0.126 0.79% 10.356 2 0.540 01751 0.712 DOSH 0.579 9.792 1.6) 0,572 0.02 5 0.147 0.621 0.5667 097 0.694 0.402 0.432 7 0.163 0.313 02 0.233 0.027 0:42 0:04 0227 1.424 0361 0,254 0.24 1.04 016 Present Value of an Annuity of $1 at Compound Interest Year 109 129 15% 20% 1 0.943 0.909 0.893 0.370 0.833 2 1.833 1.736 1.690 1.626 1.52 2.673 2.457 2.402 2.283 2. 106 4 2.465 3.170 3.037 2.655 2.599 4.212 3.791 3.605 3,352 2.991 6 4,917 1.355 1.111 3.784 2.326 2 5.562 4.860 4.564 4.160 11.605 4.900 4AN 3.31 0.002 4.772 7,360 5.650 5.019 4.192 . Determine that present value of Projects over the year life with real valuestsuming minimum rate of return of 20%. If required, round to the nearest dollar b. Which project provides the greatest net procent volum

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!