19-7different methods of evaluating investment: proposals. Someone had an amount of 60,000 $ Dollars, and he wanted to invest it. He had two opportunities, each of which brought him the following streams: second chance 35000 First chance 18000 18000 18000 year 1 35000 15000 2 3 15000 18000 4 18000 5 The value of the Salvage is estimated to be 3000 $ Dollars for the first opportunity and 2000 $ Dollars for the second opportunity. Required: As a management accountant, you are asked to express an opinion on investing the amount using the following methods: 1- The net present value, noting that the discount rate is 10%. 2-. The internal rate of return on investment.
19-7different methods of evaluating investment: proposals. Someone had an amount of 60,000 $ Dollars, and he wanted to invest it. He had two opportunities, each of which brought him the following streams: second chance 35000 First chance 18000 18000 18000 year 1 35000 15000 2 3 15000 18000 4 18000 5 The value of the Salvage is estimated to be 3000 $ Dollars for the first opportunity and 2000 $ Dollars for the second opportunity. Required: As a management accountant, you are asked to express an opinion on investing the amount using the following methods: 1- The net present value, noting that the discount rate is 10%. 2-. The internal rate of return on investment.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:19-7different methods of evaluating investment: proposals. Someone had an
amount of 60,000 $ Dollars , and he wanted to invest it. He had two opportunities,
each of which brought him the following streams:
second chance
35000
First chance
18000
year
1
35000
18000
2
15000
18000
3
15000
18000
4
18000
The value of the Salvage is estimated to be 3000 $ Dollars for the first
opportunity and 2000 $ Dollars for the second opportunity.
Required: As a management accountant, you are asked to express an
opinion on investing the amount using the following methods:
1- The net present value, noting that the discount rate is 10%.
2.. The internal rate of return on investment.
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