QUESTION 3. Evaluate the following investment project according to the Discounted Payback Period (DPP) and NPV, and advise the management whether it should be accepted or rejected. The weighted average cost of capital (WACC) of the firm is 21%. YEAR CASH OUTFLOWS 100.000 1 100.000 YEAR CASH INFLOWS 1 70.000 2 80.000 100.000 4 150.000 200.000 Salvage Value 50.000
QUESTION 3. Evaluate the following investment project according to the Discounted Payback Period (DPP) and NPV, and advise the management whether it should be accepted or rejected. The weighted average cost of capital (WACC) of the firm is 21%. YEAR CASH OUTFLOWS 100.000 1 100.000 YEAR CASH INFLOWS 1 70.000 2 80.000 100.000 4 150.000 200.000 Salvage Value 50.000
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 1CMA
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![QUESTION 3.
NPV, and advise the management whether it should be accepted or rejected. The weighted average cost of capital
(WACC) of the firm is 21%.
Evaluate the following investment project according to the Discounted Payback Period (DPP) and
YEAR
CASH OUTFLOWS
100.000
1
100.000
YEAR
CASH INFLOWS
1
70.000
80.000
3
100.000
4
150.000
200.000
Salvage Value
50.000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2d0c962f-fc3f-48e2-8b13-c8e543fde6c3%2Fea3c56fe-188e-44a0-84d5-4a8c3739074d%2Ff6hjdm_processed.png&w=3840&q=75)
Transcribed Image Text:QUESTION 3.
NPV, and advise the management whether it should be accepted or rejected. The weighted average cost of capital
(WACC) of the firm is 21%.
Evaluate the following investment project according to the Discounted Payback Period (DPP) and
YEAR
CASH OUTFLOWS
100.000
1
100.000
YEAR
CASH INFLOWS
1
70.000
80.000
3
100.000
4
150.000
200.000
Salvage Value
50.000
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