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Author Question: Pinkerton Truck Rental is considering two mutually exclusive engine development projects. The RPX ... (Read 38 times)

campbellfam07

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on: Aug 7, 2023
Pinkerton Truck Rental is considering two mutually exclusive engine development projects. The RPX design has an expected life of 4 years and projected cash inflows are $4.8 million at the end of each of the first 2 years and $2.4 million in each of the next 2 years. The RPB design is more flexible and has an 8-year life. The projected end-of-year flows from the RPB design are $3.2 million in each of the first 2 years and $2.8 million in each of the next 6 years. Both projects require an initial investment of $6.9 million, and Pinkerton’s cost of capital is 13%. What is the NPV (on an 8-year extended basis) of the project with the most value to the company?

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$6.844 million


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$7.204 million


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$7.985 million


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$8.311 million

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by campbellfam07 on Aug 7, 2023

Rcfelber

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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campbellfam07

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Reply 2 on: Aug 7, 2023
YES! Correct, THANKS for helping me on my review

samiel-sayed

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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