Solution-Prepare separate computations for each project

Prepare separate computations for each project

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Reference no: EM13490473

Labeau Products, Ltd. Of Perth, Australia, has $35,000 to invest, The company is trying to decide between two alternative uses for the funds as follows:

	Invest in Project X	Invest in Project Y
Investment required	$35,000	$35,000
Annual cash inflows	$9,000
Single cash inflow at the end of 10 years		$150,000
Life of the project	10 years	10 years

The company's discount rate is 18%

(ignore income taxes) Which alternative would you recommend that the company accept? Show all computations using the net present value approach. Prepare separate computations for each project.

Reference no: EM13490473

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Prepare separate computations for each project

Reference no: EM13490473

Reference no: EM13490473

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