Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. alfarsi industries uses the net present value meth

Alfarsi Industries uses the net present value method to make investment decisions and requires a...

70.2K

Verified Solution

Question

Accounting

image

Alfarsi Industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. The company is considering two different investments. Each require an initial investment of $14,600 and will produce cash flows as follows: End of Year Investment $9,400 $ 0 9,400 0 ,400 28,200 3 9 The present value factors of $1 each year at 15% are: 1 2 3 0.8696 0.7561 0.6575 The present value of an annuity of $1 for 3 years at 15% is 2.2832 The net present value of Investment B is: Multiple Choice O $3,600. $3,942 o o $8.942 $(18.542) $118.542 O $46.742

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

4 Rate of Change From Tables Objective Students will be able to describe what the...

Electrical Engineering
1.2K views

Please, faster Please answer the following questions in \"Energy Efficiency Basics\" multiple choice: السؤال 16 A 20 kW electric...

Biology
1.2K views

Question 7 n cyclic photophosphorylation plastocyanin sends the electron back to O NADPH molecules O...

Geometry
1.2K views

Question 6 Which triangle is not similar to any of the other three triangles 57...

Algebra
1.2K views

Which of the below is a factor of x 27 x 3 O x 3...

Accounting
1.2K views

Warnerwoods Company uses a perpetual inventory system. It entered into the following...

Accounting
1.2K views

Given a present value factor of 0.7921, assuming a 6% discount rate, the present value...

Accounting
1.2K views

Apex Company prepared the statement of cash flows for the current year that is shown...

Accounting
1.2K views

1. 2. Wilson Tech's production cost data for the current...

Finance
1.2K views

1. If the expected rate of return is 15.5% and dividend yield is 6.1. What...

Finance
1.2K views

Question 15 1 pts You are considering investing in a project that increases annual costs...

Finance
1.2K views

Dominic Monaldo is applying for a loan from a bank. The bank is concerned because...