Use the following information to answer questions 11-15: A firm evaluates a project with the following cash flows. The firm has a 2 year payback period criteria and a required return of 17 percent. Year Cash flow (OMR) -39,000 28,000 19,000 14,000 1. 3 -12,000 10,000 11. What is the net present value for the project? 12. What is the payback period for the project? 13. What is the discounted payback period for the project? 14. What is the profitability index for the project? 15. Given your analysis, should the fim accept or reject the project?
Use the following information to answer questions 11-15: A firm evaluates a project with the following cash flows. The firm has a 2 year payback period criteria and a required return of 17 percent. Year Cash flow (OMR) -39,000 28,000 19,000 14,000 1. 3 -12,000 10,000 11. What is the net present value for the project? 12. What is the payback period for the project? 13. What is the discounted payback period for the project? 14. What is the profitability index for the project? 15. Given your analysis, should the fim accept or reject the 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 3CMA
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please answer the question (12-13-14-15)
![Use the following information to answer questions 11-15:
A firm evaluates a project with the following cash flows. The firm has a 2 year payback period
criteria and a required return of 17 percent.
Year Cash flow
(OMR)
-39,000
28,000
19,000
14,000
1.
3
-12,000
10,000
11. What is the net present value for the project?
12. What is the payback period for the project?
13. What is the discounted payback period for the project?
14. What is the profitability index for the project?
15. Given your analysis, should the fim accept or reject the project?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc8aeba9f-d16e-44a5-9e1f-60211afce237%2F16924d7c-dd20-4b6d-a622-48c608779828%2Fbfhqx4.jpeg&w=3840&q=75)
Transcribed Image Text:Use the following information to answer questions 11-15:
A firm evaluates a project with the following cash flows. The firm has a 2 year payback period
criteria and a required return of 17 percent.
Year Cash flow
(OMR)
-39,000
28,000
19,000
14,000
1.
3
-12,000
10,000
11. What is the net present value for the project?
12. What is the payback period for the project?
13. What is the discounted payback period for the project?
14. What is the profitability index for the project?
15. Given your analysis, should the fim accept or reject the project?
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