Discuss present value index

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Reference no: EM13496446

Requirements:

a) Using the revised data for the alternative equipment, prepare a suitably presented spreadsheet that provides calculations for the following capital budgeting evaluation investment techniques:

  • Net Present Value (NPV)
  • Present Value Index
  • Internal Rate of Return
  • Payback period
  • Unadjusted rate of return

 

b) At an appropriate place on your worksheet, provide a brief written assessment (no more than 300 words) as to whether the company should purchase this alternate equipment and why.

Your work should:

  • use an appropriate layout and format.
  • Make use of formulas and Excel's built-in functions, rather than hard code your answers.
  • Be printed on no more than one page of letter sized paper.

 

Reference no: EM13496446

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