Question
23. Recovery Period and Net Present Price Some investments currently under consideration have a payback period...
23. Recovery Period and Net Present Price
Some investments currently under consideration have a payback period of seven years, with an initial investment cost of $685,000.
a. If the demand rate is 11%, what is the smallest net present value?
b. What is the most likely net present price?
(assume that cash flows are traditional cash flows)
Homework Answers
Answer #1
ANSWERS:
23) a) Smallest net present value = $617117
Solution provided below ?
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b) Net present price = $329936
Solution provided below ?
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