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Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | Apr 2017 |
| Last Sign in: | 331 Weeks Ago, 1 Day Ago |
| Questions Answered: | 12843 |
| Tutorials Posted: | 12834 |
MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
‘ enamheducatiaerm/hmjpx ‘ 5 value 200 points Pent Industries has $140,000 to invest The company is trying to decide between two alternative uses 01 the
funds The alternatives are' Cost of equipment required $140,000 $0
Working capital investmem required 50 $140,000
Annual cash Inflows $23,000 $35,000
Salvage value of equipment in SIX years $0,400 $0
Life of the pro ect 6 xears 6 xears The working capital needed for project B will be released at the end of six years {or investment
elsewhere. Pent Industries’ discount rate is 15%. Click here to View Exhibit 1 1 5-1 and Exhibit 113-2, to determine the appropriate discount factor(s) using
tables. Required:
a Calculate net present value for each project, Answer is complete but not entirely correct Net present value 3 (49,316” b. Which investment alternative (ri either) would you recommend that the company accept? 0 Project A
o (a Project B
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