Question
In: Finance
Bridgewater Fountains is considering expanding its current line of business and has developed the following expected...
Bridgewater Fountains is considering expanding its current line of business and has developed the following expected cash flows for the project. Should this project be accepted if the required return is 9.6 percent? Why or why not?
You must calculate NPV and IRR for each problem, using the NPV and IRR functions in the Excel spreadsheet program. Provide a basic description of the answers for each problem.
| Year | Cash Flow |
| 0 | -487,900 |
| 1 | 187,200 |
| 2 | 229,900 |
| 3 | -27,300 |
| 4 | 246,800 |
Solutions
jeff jeffy answered 1 year agoRelated Solutions
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980,500
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980,500
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2
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production capacity. The costs and expected cash flows of the two
independent projects are given in the following table. The firm
uses a discount rate of 14.08 percent for such projects.
Year
Product Line Expansion
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0
-$2,233,600
-$9,704,800
1
478,900
2,611,700
2
980,500
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3
980,500
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5
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