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Unformatted text preview: Net present value 5. Present value index = Total present value of net cash flow Amount to be invested Present value index of Proposal B: = Present value index of Proposal C: = 6. First: Second: 7. First: Second: 8. Indicate whether the statement is true (T) or false (F). Present Value of $1 at 12% Presen Net Ca Based on the net present value, the proposals should be ranked as follows: value per dollar invested), the proposals should be ranked as follows: a. Although Proposal B has the larger net present value, Proposal C has a higher present value index. b. Project B should be favored over project C since it has the higher NPV. c. If funds are limited and only one project can be accepted, then the investment with the greater amount of present value per dollar invested should be selected. nt Value of ash Flow nt Value of ash Flow...
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 Spring '08
 THOMAS

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