Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. abc inc. is looking at investing in a 3-year proje

ABC Inc. is looking at investing in a 3-year project that will create cash inflows...

80.2K

Verified Solution

Question

Accounting

ABC Inc. is looking at investing in a 3-year project that will create cash inflows of $7000 in the first year, $8000 in the second year, and $9000 in the third year. The cost of this project is $18000, and the required return is 12%. What is the net present value of this project and the payback period on this project? Answer is $1033.57 and 2.33 years. Need FULL SOLUTIONS THANK YOU. If using the discounted payback period rule and a cutoff point of 2.5 years, should the company invest in this project? Need FULL SOLUTIONS THANK YOU

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

Time(weeks): 0 |   2 |   6 | 10 Level: 210| 200 | 190| 180 1. The table...

Chemistry
1.2K views

Aspirin can be prepared from salicylic acid ( C 7 H 6 O 3 ), which...

Biology
1.2K views

Many researchers believe that mirror neurons allow humns todevelop facial expressions for basic emotions.experience empathy.reverse...

Biology
1.2K views

The most commonform of selectivepermeability in a cellmembrane isA. facilitated diffusion.B. simple diffusion.C. channel-mediated diffusion.D....

Physics
1.2K views

A parallel beam of fast moving electrons is incident normally on a narrow slit A...

Geometry
1.2K views

Kunal s hours worked and corresponding total earnings are shown in the graph What would...

Algebra
1.2K views

Suppose Quinton borrows a student loan of $8,500 at an interest rate of 6.5%. Once...

Algebra
1.2K views

Find the amount that results from the given investment.$100 invested at 10% compounded quarterly after...

Accounting
1.2K views

QUESTION 1 Diandra Bhd is a manufacturer and supplier of men and women apparel. It...

Accounting
1.2K views

444 + - Case in the News LO 13-1, 13-2, 13-3, 13-4] How Netflix Aims...

Accounting
1.2K views

http://www.csus.edu/indiv/p/pforsichh/documents/AGreenWinter_C.pdf 2. Identify and evaluate the environmental advantages of the wind turbine project.

Accounting
1.2K views

Name some reasons why the taxable income of a corporation is likely not to be...