|
Title: Geronimo, Inc. is considering a project that has an initial after-tax outlay or after-tax cost of ... Post by: stranahan on Nov 17, 2016 Geronimo, Inc. is considering a project that has an initial after-tax outlay or after-tax cost of $220,000. The respective future cash inflows from its four-year project for years 1 through 4 are: $50,000, $60,000, $70,000 and $80,000. Geronimo uses the net present value method and has a discount rate of 11%. Will Geronimo accept the project?
A) Geronimo rejects the project because the NPV is about -$2,375.60. B) Geronimo accepts the project because the NPV is greater than $10,000.00. C) Geronimo rejects the project because the NPV is about -$22,375.73. D) Geronimo rejects the project because the NPV is about -$12,375.60. Title: Re: Geronimo, Inc. is considering a project that has an initial after-tax outlay or after-tax cost ... Post by: crackerspoppy on Nov 17, 2016 Content hidden
Title: Re: Geronimo, Inc. is considering a project that has an initial after-tax outlay or after-tax cost of ... Post by: stranahan on Jan 6, 2017 Thank you very much for this. It's really helpful.
|