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15-01Pr_5e

15-01Pr_5e - a Considering only quantitative factors the...

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Problem 15-1 Name: Section: Score: 0% Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. A red asterisk (*) will appear beside, below or above an incorrect answer. 1. a. Average annual rate of return for both projects: ÷ = ÷ b. Net present value analysis: Net Cash Flow Year Warehouse Warehouse 1 2 3 4 5 Total Amount to be invested Net present value 2. Which of the following points are valid and should be reported to the investment committee?
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Unformatted text preview: a. Considering only quantitative factors, the tracking technology investment should be selected since it has a positive net present value. b. Both projects offer the same average annual rate of return. c. Only the tracking technology proposal exceeds the selected rate established for discounted cash flows (15%). Instructions Present Value of $1 at 15% Present Value of Net Cash Flow Tracking Technology Tracking Technology...
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15-01Pr_5e - a Considering only quantitative factors the...

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