Calculate the incremental net present value, Finance Basics

The following NPV's have been calculated to determine if a compressor installation should be accelerated from Year 3 to Year 7. The compressor cost is $1,500,000.

 

1537_Calculate the Incremental Net Present Value.png

a. Calculate the incremental NPV's for this project using the tabled data.

b. If capital is limited and your average reinvestment opportunity rate is 15%, what is your recommendation regarding acceleration of the project?

Posted Date: 3/6/2013 1:56:25 AM | Location : United States







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