Author Question: The capital budgeting process consists of four distinct but interrelated steps: proposal generation, ... (Read 61 times)

audie

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The capital budgeting process consists of four distinct but interrelated steps: proposal generation, review and analysis, decision making, and termination.
 
  Indicate whether the statement is true or false

Question 2

Calculate the present value of 5,800 received at the end of year 1, 6,400 received at the end of year 2, and 8,700 at the end of year 3, assuming an opportunity cost of 13 percent.
 
  What will be an ideal response?



lin77x

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Answer to Question 1

FALSE

Answer to Question 2

PV = 5,800(1.13 )-1 + 6,400(1.13 )-2 + 8,700(1.13 )-3 = 16,174.42



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