LO 14.07 – Present Value Cash Flow
Managerial Accounting
Garrison, Noreen, and Brewer
17th Edition
What is the present value of this annuity?
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What is the present value of this annuity?
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Calculate the payback period, net present value, internal rate of return, profitability index, and simple rate of return. Then find out which product is preferred, and which one should be accepted. Should Lou Barlow choose to manufacture and sell Product A or Product B for a five-year period, considering his annual pay raises are determined by his division’s return on investment? The cost and revenue estimates for each product are given, and the company’s discount rate is given. Calculate the payback period, net present value, and project profitability index for each product.
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How much needs to be invested in order to have the desired sum in ten years.
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Find the payback period of the investment.
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Find what the net present value of the proposed project is closest to.
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Find the internal rate of return on the investment.
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Rank projects from most to least profitable.
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Find the simple rate of return.
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Find the present value of lease payments
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