Use Excel’s NPV function for this problem. Riverside Inc. has an 8% cost of capital. The firm has an investment opportunity that costs $1,000. Riverside expects the investment to generate annual cash inflows $360 for each of the next three years. The net present value of the project (rounded to the nearest dollar) is Select one: a. $80. b. $72. c. ($72). d. ($80). Use Excel’s IRR function for this problem. Rancho Cucamonga has a 6% cost of capital. The firm has an investment opportunity that costs $2,000. Riverside expects the investment to generate annual cash inflows $600 for each of the next four years. The internal rate of return and Rancho’s decision are Select one: a. 7.7% and don’t invest in the project. b. 1.7% and don’t invest in the project. c. 1.7% and invest in the project. d. 7.7% and invest in the project. Whitelands Inc. bought equipment for $150. Whitelands estimated that the equipment would last ten years and used the double-declining balance method to depreciate it. The amount of the first year’s depreciation expense was Select one: a. $0. b. $15. c. $120. d. $30.
Use Excel’s NPV function for this problem. Riverside Inc. has an 8% cost of capital. The firm has an investment opportunity that costs $1,000. Riverside expects the investment to generate annual
Select one:
a. $80.
b. $72.
c. ($72).
d. ($80).
Use Excel’s IRR function for this problem. Rancho Cucamonga has a 6% cost of capital. The firm has an investment opportunity that costs $2,000. Riverside expects the investment to generate annual cash inflows $600 for each of the next four years. The
Select one:
a. 7.7% and don’t invest in the project.
b. 1.7% and don’t invest in the project.
c. 1.7% and invest in the project.
d. 7.7% and invest in the project.
Whitelands Inc. bought equipment for $150. Whitelands estimated that the equipment would last ten years and used the double-declining balance method to
Select one:
a. $0.
b. $15.
c. $120.
d. $30.
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