15-03Pr_5e

15-03Pr_5e - Amount to be invested Present value index of...

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Problem 15-3 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. Branch Office Expansion Year Net Cash Flow 1 X = 2 X = 3 X = Total Amount to be invested Net present value Computer System Upgrade Year Net Cash Flow 1 X = 2 X = 3 X = Total Amount to be invested Net present value Install Internet Bill-Pay Year Net Cash Flow 1 X = 2 X = 3 X = Total Amount to be invested Net present value 2. Instructions Present Value of $1 at 15% Present Value of Net Cash Flow Present Value of $1 at 15% Present Value of Net Cash Flow Present Value of $1 at 15% Present Value of Net Cash Flow
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Present value index = Total present value of net cash flow
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Unformatted text preview: Amount to be invested Present value index of branch office: = Present value index of computer system: = Present value index of Internet bill-pay: = 3. Indicate which of the following statements are true (T) and which are false (F). a. The computer system upgrade has the largest present value index b. The branch office expansion has the largest net present value c. The computer system upgrade returns less present value per dollar invested than does the branch office expansion. d. Because the present value index for the Internet bill-pay is less than 1, it does not meet the minimum rate of return standard....
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15-03Pr_5e - Amount to be invested Present value index of...

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