Rate of return methods of capital budgeting


An investment costs $10,000 and offers annual cash inflow of $1,770 for ten years. According to both the net present value and internal rate of return methods of capital budgeting, should the firm make this investment if its cost of capital is (a) 10 percent or (b) 14 percent?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Rate of return methods of capital budgeting
Reference No:- TGS041405

Expected delivery within 24 Hours