expand icon
book Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen cover

Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen

النسخة 1الرقم المعياري الدولي: 978-0538736787
book Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen cover

Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen

النسخة 1الرقم المعياري الدولي: 978-0538736787
تمرين 4
NPV Versus IRR
Covington Pharmacies has decided to automate its insurance claims process. Two networked computer systems are being considered. The systems have an expected life of two years. The net cash flows associated with the systems are as follows. The cash benefits represent the savings created by switching from a manual to an automated system.
NPV Versus IRR  Covington Pharmacies has decided to automate its insurance claims process. Two networked computer systems are being considered. The systems have an expected life of two years. The net cash flows associated with the systems are as follows. The cash benefits represent the savings created by switching from a manual to an automated system.     The company's cost of capital is 10 percent. Required:  1. Compute the NPV and the IRR for each investment. 2. Show that the project with the larger NPV is the correct choice for the company.
The company's cost of capital is 10 percent.
Required:
1. Compute the NPV and the IRR for each investment.
2. Show that the project with the larger NPV is the correct choice for the company.
التوضيح
موثّق
like image
like image

1.
Calculate NPV for system I:
blured image Calcul...

close menu
Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
cross icon