Compute the (1) net present value, (2) profitability index, and (3) internal rate of return for each option. (Hint: To solve for int ate of return, experiment with alternative discount rates to arrive at a net present value of zero.) (If the net present value is egative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round answers for present value and IRR to lecimal places, e.g. 125 and round profitability index to 2 decimal places, e.g. 12.50. For calculation purposes, use 5 decimal places a lisplayed in the factor table provided.) Option A Option B $ $ Net Present Value Profitability Index Internal Rate of Return % %

Compute the (1) net present value, (2) profitability index, and (3) internal rate of return for each option. (Hint: To solve for int ate of return, experiment with alternative discount rates to arrive at a net present value of zero.) (If the net present value is egative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round answers for present value and IRR to lecimal places, e.g. 125 and round profitability index to 2 decimal places, e.g. 12.50. For calculation purposes, use 5 decimal places a lisplayed in the factor table provided.) Option A Option B $ $ Net Present Value Profitability Index Internal Rate of Return % %

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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