Annual cash inflows from two competing investment projects are given below: Year 1 423 + 4 The discount rate is 12%. Year Investment A $ 2,000 3,000 4,000 5,000 $ 14,000 Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Required: Compute the present value of the cash inflows for each investment. 1 2 3 4 ليا Investment B $ 5,000 4,000 3,000 2,000 $ 14,000 Present Value of Cash Flows Investment A Investment B

Annual cash inflows from two competing investment projects are given below: Year 1 423 + 4 The discount rate is 12%. Year Investment A $ 2,000 3,000 4,000 5,000 $ 14,000 Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Required: Compute the present value of the cash inflows for each investment. 1 2 3 4 ليا Investment B $ 5,000 4,000 3,000 2,000 $ 14,000 Present Value of Cash Flows Investment A Investment B

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 16EA: Project B cost $5,000 and will generate after-tax net cash inflows of $500 in year one, $1,200 in...

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Project B cost $5,000 and will generate after-tax net cash inflows of $500 in year one, $1,200 in year two, $2,000 in year three. $2,500 in year four, and $2,000 in year five. What is the NPV using 8% as the discount rate? For further instructions on net present value in Excel, see Appendix C.
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Fox Co. has identified an investment project with the following cash flows. Year Cash Flow $ 970 760 1 1,430 1,790 a. If the discount rate is 9 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value at 17 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the present value at 23 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Present value at 9 percent b. Present value at 17 percent c. Present value at 23 percent -234