ABC Enterprise would like to evaluate/analyze an investment proposal. Given the following: Investment amount - 450,000 (2022) Dividends / Revenue stream - 100,000 for the first year and an interval of 5,000 for the succeeding years Discount rate - 14% a. NPV for the period 2023 through 2029; b. Total NPV using manual computation; c. Total NPV using the Excel function; and d. IRR rate. EXCEL COMPUTATION
ABC Enterprise would like to evaluate/analyze an investment proposal. Given the following: Investment amount - 450,000 (2022) Dividends / Revenue stream - 100,000 for the first year and an interval of 5,000 for the succeeding years Discount rate - 14% a. NPV for the period 2023 through 2029; b. Total NPV using manual computation; c. Total NPV using the Excel function; and d. IRR rate. EXCEL COMPUTATION
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 15.3.1P
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Question
ABC Enterprise would like to evaluate/analyze an investment proposal.
Given the following:
Investment amount - 450,000 (2022)
Dividends / Revenue stream - 100,000 for the first year and an interval of 5,000 for the succeeding years
Discount rate - 14%
a.
b. Total NPV using manual computation;
c. Total NPV using the Excel function; and
d.
EXCEL COMPUTATION AND FORMULA
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