XYZ Construction Co is considering a new inventory system that will cost 800,000 dollar. The system is
Fantastic news! We've Found the answer you've been seeking!
Question:
XYZ Construction Co is considering a new inventory system that will cost 800,000 dollar. The system is expected to generate positive cash flows over the next four years in the amounts of 300,000 dollar in year one,, 350,000 dollar in year two, 200,000 dollar in year three, and 480,000 dollar in year four. DYI's required rate of return is 10%. What is the payback and NPV of this project? Do you accept it according to NPV and why?
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date: