Unformatted text preview: better than others. I like the project profitability value because although the net present value on a project 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. Exercise 12-11 1 2 cost of equipment req 300000 working capital investment req 300000 annual cash inflows 80000 60000 salvage value of equip in 7 yrs 20000 life of the project 7.00 7.00...
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- Spring '10
- Net Present Value, 10%, 7 years, 18000 22500 12%