Britney Javelin Company is considering two investments, both of which cost $26,000. The cash flows are as follows: Use Appendix B and Appendix D Year Project A Project B Project A $10,000 14,000 8,000 a. Calculate the payback period for project A and project B. (Round the final answers to 2 decimal places) Payback period years years: Project B $9,000 14,000 13,000 Project A Project B b-1. Calculate the NPV for project A and project B. Assume a cost of capital of 9 percent. (Round "PV Factor" to 3 decimal places. Round the intermediate and final answers to the nearest whole dollar) D Net present value $

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Project A
Project B
Project A
Project 8
Payback period
b-1. Calculate the NPV for project A and project B. Assume a cost of capital of 9 percent. (Round "PV Factor" to 3 decimal places.
Round the intermediate and final answers to the nearest whole doller.)
O Project A
O Project B
O Both
years
years
Net present value
$
b-2. Which of the two projects should be chosen based on the NPV method?
Chee
Transcribed Image Text:Project A Project B Project A Project 8 Payback period b-1. Calculate the NPV for project A and project B. Assume a cost of capital of 9 percent. (Round "PV Factor" to 3 decimal places. Round the intermediate and final answers to the nearest whole doller.) O Project A O Project B O Both years years Net present value $ b-2. Which of the two projects should be chosen based on the NPV method? Chee
Britney Javelin Company is considering two investments, both of which cost $26,000. The cash flows are as follows: Use Appendix
B and Appendix D.
Year
1
2
3
Project A
Project B
Project A
$10,000
14,000
8,000
a. Calculate the payback period for project A and project B. (Round the final answers to 2 decimal places.)
Payback perlod
years
years
Project A
Project B
Project B
$9,000
14,000
13,000
b-1. Calculate the NPV for project A and project B. Assume a cost of capital of 9 percent. (Round "PV Factor" to 3 decimal places.
Round the intermediate and final answers to the nearest whole dollar)
A
Net present value
$
S
Check my work
Transcribed Image Text:Britney Javelin Company is considering two investments, both of which cost $26,000. The cash flows are as follows: Use Appendix B and Appendix D. Year 1 2 3 Project A Project B Project A $10,000 14,000 8,000 a. Calculate the payback period for project A and project B. (Round the final answers to 2 decimal places.) Payback perlod years years Project A Project B Project B $9,000 14,000 13,000 b-1. Calculate the NPV for project A and project B. Assume a cost of capital of 9 percent. (Round "PV Factor" to 3 decimal places. Round the intermediate and final answers to the nearest whole dollar) A Net present value $ S Check my work
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