The following data are accumulated by Geddes Company in evaluating the purchase of $150,000 of equipment, having a four-year useful life: Net Income Net Cash Flow Year 1 $44,000 $81,500 Year 2 26,000 63,500 Year 3 10,000 47,500 Year 4 3,000 40,500 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Assuming that the desired rate of return is 12%, determine the net present value for the proposal. If required, round to the nearest dollar. Net present value $fill in the blank 2
The following data are accumulated by Geddes Company in evaluating the purchase of $150,000 of equipment, having a four-year useful life: Net Income Net Cash Flow Year 1 $44,000 $81,500 Year 2 26,000 63,500 Year 3 10,000 47,500 Year 4 3,000 40,500 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Assuming that the desired rate of return is 12%, determine the net present value for the proposal. If required, round to the nearest dollar. Net present value $fill in the blank 2
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 60P
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The following data are accumulated by Geddes Company in evaluating the purchase of $150,000 of equipment, having a four-year useful life:
Net Income | Net Cash Flow | |||
Year 1 | $44,000 | $81,500 | ||
Year 2 | 26,000 | 63,500 | ||
Year 3 | 10,000 | 47,500 | ||
Year 4 | 3,000 | 40,500 |
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
- Assuming that the desired
rate of return is 12%, determine thenet present value for the proposal. If required, round to the nearest dollar.Net present value $fill in the blank 2
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