80.2K

Verified Solution

Link Copied!

Ibez Company is considering a project that requires an initial investment of $85,600 and will generate net cash flows of $16,700 per year for 6 years. Ibez requires a return of 9% on its investments. The present value factor of an annuity for 6 years at 9% is 4.4859. a. Compute the net present value of the project. b. Determine whether the project should be accepted or rejected on the basis of net present value Complete this question by entering your answers in the tabs below. Compute the net present value of the project. (Negative Net present yalue amounts should be indicated with a mines sign.) Ibez Company is considering a project that requires an initial investment of $85,600 and will generate net cash flows of $16,700 per year for 6 years. Ibez requires a return of 9% on its investments. The present value factor of an annuity for 6 years at 9% is 4.4859 a. Compute the net present value of the project. b. Determine whether the project should be accepted or rejected on the basis of net present value. Complete this question by entering your answers in the tabs below. Dotermine whether the profect should be accepted or rejected on the basis of not present value. Determine whether the project should be accepted or rejected on the basis of net present value

Answer & Explanation Solved by verified expert

See Answer