15-05Pr_5e_s

Survey of Accounting (Available Titles Cengagenow)

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Problem 15-5 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 in the row immediately to the right of an incorrect answer. 1. Net present value analysis: Site A: Annual net cash flow (at the end of each of 6 years) Present value of an annuity of $1 at 20% for 6 years x Present value of annual cash flows Less amount to be invested Net present value Site B: Annual net cash flow (at the end of each of 4 years) Present value of an annuity of $1 at 20% for 4 years x Present value of annual cash flows Less amount to be invested Net present value 2. Net present value analysis: Net Cash Flow Present Value of Net Cash Flow Year Site A Site B Site A Site B 1 2 3 4 Residual value Total Amount to be invested Net present value 3. Which of the following points are valid and could be reported to the Investment Committee? a. Projects must be compared over equal lives, so the residual value of Site A
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15-05Pr_5e_s - Problem 15-5 Name: Section: Score: 0%...

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