Assume that Project A has the cash flows listed below and a relevant cost of capital of 13 percent. Based on this data, determine the net present value (NPV) of this project using the equivalent annual annuity (EAA) approach and assuming infinite replication. Year 0 1 2 3 4 5 O $2.905.70 O $4,967.16 $2,063.33 $3.865.27 $6,244.42 Project A Cash Flow $8,000.00 0.00 0.00 $ $ $ $ 0.00 0.00 $20,000.00

Assume that Project A has the cash flows listed below and a relevant cost of capital of 13 percent. Based on this data, determine the net present value (NPV) of this project using the equivalent annual annuity (EAA) approach and assuming infinite replication. Year 0 1 2 3 4 5 O $2.905.70 O $4,967.16 $2,063.33 $3.865.27 $6,244.42 Project A Cash Flow $8,000.00 0.00 0.00 $ $ $ $ 0.00 0.00 $20,000.00

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 4BE: Internal rate of return A project is estimated to cost 463,565 and provide annual net cash flows of...

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