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Unformatted text preview: looks good, the projects are not equally desirable if the funds available for investments are limited. We should look at the profitability and see if its worth pursuing. E 12-11 Item Yrs Amt of Cash Flows 20% present val of cash flows cost of equip req now-300000 1-300000 annual cash flows 1-7 80000 3.605 288400 salvage val 7 20000 0.279 5580-6020 Item Yrs Amt of Cash Flows 20% present val of cash flows working cap req now-300000 1-300000 annual cash flows 1-7 60000 3.605 216300-83700 Project A is better than project B because you lose less money....
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This note was uploaded on 10/10/2010 for the course ACCT 225 S taught by Professor Webster during the Spring '10 term at Franklin.
- Spring '10