Subject :- Accounting The Sisypan vinpany to pramning vir living rppmachinery costing $420,000. The Sisyphean Company expects cash inflows from this project as detailed below:Year 1 Year 2 Year 3$200,000 $225,000 $275,000The appropriate discount rate for this project is 17%.The net present value (NPV) for this project is closest to:OA. $203,425OB. $484,344OC. $193,738OD. $135,616Year 1$126,948Year 4$200,000The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some newmachinery costing $275,000. The Sisyphean Company expects cash inflows from this project asdetailed below:Year 2$126,948OA. 35%OB. 23%OC. 18%OD. 30%EXPscribed TextYear 3$126,948Year 4$126,948The appropriate discount rate for this project is 18%.The internal rate of return (IRR) for this project is closest to:CIB

Net present value method : It is defined as the difference between the present value of cash inflows…

machinery costing $420,000. The Sisyphean Company expects cash inflows from this project as detailed below: Year 1 Year 2 Year 3 $200,000 $225,000 $275,000 Year 4 $200,000 The appropriate discount rate for this project is 17%. The net present value (NPV) for this project is closest to: OA. $203,425 OB. $484,344 OC. $193,738 OD. $135,616

machinery costing $420,000. The Sisyphean Company expects cash inflows from this project as detailed below: Year 1 Year 2 Year 3 $200,000 $225,000 $275,000 Year 4 $200,000 The appropriate discount rate for this project is 17%. The net present value (NPV) for this project is closest to: OA. $203,425 OB. $484,344 OC. $193,738 OD. $135,616

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 21P

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