ACCCB Competency 1

.pptx

School

University of Phoenix *

*We aren’t endorsed by this school

Course

543

Subject

Management

Date

Jul 1, 2024

Type

pptx

Pages

10

Uploaded by BaronRamPerson4683

ACCCB/543 Competency 1 Assessment Course Title: Managerial Accounting and Legal Aspects of Business Competency Assessment Title: Net Present and Internal Rate of Return
The Net Present Value The net present value of each project NPV = [cash flow / (1+i) ^t] - initial investment NPV. A= ($126,000/ (1+0.8) ^4)-$400,000 = $17,327.98 NPV. B = ($52,800/ (1+0.8) ^4)-$160,000 = $14,880.30 These two positive NPV implies that the Income generated by both investment exceeds the costs of the projects. Meaning that the projected earnings generated by both projects— discounted for their present value—exceed the anticipated costs in today's dollars.
NPV For Project A Project A Initial Investment -400000 Year 1 126000 $ $116,666.67 Year 2 126000 $108,024.69 Year 3 126000 $100,022.86 Year 4 126000 $92,613.76 Discount Rate 8% NPV $417,327.98
NPV For Project B Project B Initial Investment -160000 year 1 52800 $48,888.89 year 2 52800 $45,267.49 year 3 52800 $41,914.34 year 4 52800 $38,809.58 Rate 8% NPV $174,880.30
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