$8,000 Year 1 $4,000 $8,000 Year 2 $9,000 $8,000 Year 3 $8,000 Year 4 $8,000 $20,000 $15,000 $10,000 $5,000 Net Cash Flows (Stout) *+ableau Year 5 $13,000 $20,000 $18,000 $0 БО $5,000 $10,000 $15,000 $20,000 Net Cash Flows (Boise) 1. Compute the net present value of each project. 2. Based on net present values, which project(s) should the company Invest In? 3. Compute the profitability Index for each project. If the company can select only one project, which should it choose on the basis o profitability Index? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the net present value of each project. Stout Year 1 Year 2 Year 3 Year 4 Year 5 Totals Initial investment Net present value Boise Year 1 Year 2 Year 3 Year 4 Year 5 Totals Initial investment Net present value Present Value of 1 Present Value of Net Cash Flows at 12% Net Cash Flows
$8,000 Year 1 $4,000 $8,000 Year 2 $9,000 $8,000 Year 3 $8,000 Year 4 $8,000 $20,000 $15,000 $10,000 $5,000 Net Cash Flows (Stout) *+ableau Year 5 $13,000 $20,000 $18,000 $0 БО $5,000 $10,000 $15,000 $20,000 Net Cash Flows (Boise) 1. Compute the net present value of each project. 2. Based on net present values, which project(s) should the company Invest In? 3. Compute the profitability Index for each project. If the company can select only one project, which should it choose on the basis o profitability Index? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the net present value of each project. Stout Year 1 Year 2 Year 3 Year 4 Year 5 Totals Initial investment Net present value Boise Year 1 Year 2 Year 3 Year 4 Year 5 Totals Initial investment Net present value Present Value of 1 Present Value of Net Cash Flows at 12% Net Cash Flows
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:$8,000
Year 1
$4,000
$8,000
Year 2
$9,000
$8,000
Year 3
$8,000
Year 4
$8,000
$20,000 $15,000 $10,000 $5,000
Net Cash Flows (Stout)
*+ableau
Year 5
$13,000
$20,000
$18,000
$0
БО
$5,000 $10,000 $15,000 $20,000
Net Cash Flows (Boise)
1. Compute the net present value of each project.
2. Based on net present values, which project(s) should the company Invest In?
3. Compute the profitability Index for each project. If the company can select only one project, which should it choose on the basis o
profitability Index?
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Compute the net present value of each project.
Stout
Year 1
Year
2
Year 3
Year 4
Year 5
Totals
Initial investment
Net present value
Boise
Year 1
Year 2
Year 3
Year 4
Year 5
Totals
Initial investment
Net present value
Present Value of 1
Present Value of
Net Cash Flows
at 12%
Net Cash Flows
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