Browse Our Directory

Net Present Value – Swanson Industries has four potential projects

$2.50

Net Present Value – Swanson Industries has four potential projects all with an initial cost of $2,000,000. The capital budget for the year will only allow Swanson industries to accept one of the four projects. Given the discount rates and the future cash flows of each project, which project should they accept?

Cash Flows Project M Project N Project O Project P
Year one $500,000 $600,000 $1,000,000 $300,000
Year two $500,000 $600,000 $800,000 $500,000
Year three $500,000 $600,000 $600,000 $700,000
Year four $500,000 $600,000 $400,000 $900,000
Year five $500,000 $600,000 $200,000 $1,100,000
Discount Rate 6% 9% 15% 22%
SKU: net-present-value-swanson-industries-has-four-potential-projects Category:
Share with others

Details

Net Present Value – Swanson Industries has four potential projects all with an initial cost of $2,000,000. The capital budget for the year will only allow Swanson industries to accept one of the four projects. Given the discount rates and the future cash flows of each project, which project should they accept?

Cash Flows Project M Project N Project O Project P
Year one $500,000 $600,000 $1,000,000 $300,000
Year two $500,000 $600,000 $800,000 $500,000
Year three $500,000 $600,000 $600,000 $700,000
Year four $500,000 $600,000 $400,000 $900,000
Year five $500,000 $600,000 $200,000 $1,100,000
Discount Rate 6% 9% 15% 22%

Reviews

There are no reviews yet.

Only logged in customers who have purchased this product may leave a review.