The net present value (NPV) of the project is $ (Round to the nearest cent.) Is the project acceptable? (Select the best answer below.) O Yes O No Data table (Click on the icon here in order to copy the contents of the data table be a spreadsheet.) Initial investment (CF) Year (0) 1 2 3 -1,156,000 Cash inflows (CF) 899 $75,000 $140,000 $192,000 $254,000 $313,000 $378,000 $271,000

The net present value (NPV) of the project is $ (Round to the nearest cent.) Is the project acceptable? (Select the best answer below.) O Yes O No Data table (Click on the icon here in order to copy the contents of the data table be a spreadsheet.) Initial investment (CF) Year (0) 1 2 3 -1,156,000 Cash inflows (CF) 899 $75,000 $140,000 $192,000 $254,000 $313,000 $378,000 $271,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 3PB: Net present value method, present value index, and analysis for a service company First United Bank...

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Net present value method, present value index, and analysis for a service company First United Bank Inc. is evaluating three capital investment projects by using the net present value method. Relevant data related to the projects are summarized as follows: Instructions 1. Assuming that the desired rate of return is 15%, prepare a net present value analysis for each project. Use the present value table appearing in Exhibit 2 of this chapter. 2. Determine a present value index for each project. (Round to two decimal places.) 3. Which project offers the largest amount of present value per dollar of investment? Explain.