Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 10P: Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year...
Related questions
Question
- If the
opportunity cost of capital of 4%, Following information relate to the cash flow of below three projects proposals.
|
Project |
Year: 0 |
1 |
2 |
3 |
|
X |
-$40,000 |
+20,000 |
+18,000 |
+25,000 |
|
Y
|
-$65,000 |
+15,000 |
+30,000 |
+35,000 |
|
Z
|
-70000 |
25,000 |
25,000 |
30,000 |
- which project will be acceptable under the
Net Present Value method. Explain . - Which project will be acceptable under the discount payback period?
3.If the discount rate 4%, which project will be acceptable under the discount payback period?
4. With help of scientific calculator or excel program, calculate the
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