net present value, and accrual accounting rate of return with initial investment, for each proposal. Use a required rate of return of 14%. Answer: Payback for Proposal A: Year 1 $80,000 Year 2 10,000 Payback is 2 years $90,000 Payback for Proposal B: Year 1 $45,000 Year 2 45,000 Payback is 2 years $90,000 Payback for Proposal C: Year 1 $90,000 Payback is 1 year Net Present Value: Proposal A: Predicted Cash Flows Year(s) PV Factor PV of Cash Flows Investment $(90,000) 0…
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