Project accept/reject
Not what you're looking for?
A project has annual cash flows (including the initial year) of -160,000, 70,000, 55,000, 70,000, 60,000, and 45,000, and a discount rate of 11%. The company should:
a. Accept the project because it will increase shareholder wealth.
b. Reject the project because it will reduce shareholder wealth.
c. Reject the project because the payback period is too long.
d. Accept the project because the payback period sufficiently short.
Purchase this Solution
Solution Summary
The solution explains the correct option from the given alternatives.
Solution Preview
The PV of cash flows is 70,000/1.11 + 55,000/1.11^2 + 70,000/1.11^3 + ...
Purchase this Solution
Free BrainMass Quizzes
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.