28)
Morgan, Inc. is considering an eight-year project that has an initial
after-tax outlay or after-tax cost of $180,000. The future after-tax
cash inflows from its project for years 1 through 8 are the same at
$35,000. Morgan uses the net present value method and has a discount
rate of 12%. Will Morgan accept the project? 9
A) Morgan accepts the project because the NPV is over $10,000.
B) Morgan accepts the project because the NPV is about $6,141.
C) Morgan rejects the project because the NPV is about -$6,133.
D) Morgan rejects the project because the NPV is below -$7,000.
CLICK HERE TO GET THE ANSWER !!!!
No comments:
Post a Comment