Should we accept this project:?
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 5BE
Related questions
Question
Compute the NPV based on the following data | |||
Life of project | 10.00 | year | |
Required Investment | 500,000.00 | ||
Required |
8% | ||
Required |
35,000.00 | ||
Salvage value of equipment at end of year 10 | 12,000.00 | ||
Required overhaul in year 5 | 60,000.00 | ||
Annual increase in net income for this project | 85,000.00 | ||
Year | Cash flow | ||
0 | |||
1 | |||
2 | |||
3 | |||
4 | |||
5 | |||
6 | |||
7 | |||
8 | |||
9 | |||
10 | |||
Should we accept this project:? |
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