Accounting for Decision Making and Control 6th Edition by Jerold Zimmerman

تمرين 37

At the beginning of year 1, Northern Sun, Inc., a food processing concern, is considering a new line of frozen entrees. The accompanying table shows projected cash outflows and inflows. Assume that all inflows and outflows are end-of-period payments.
Required:
The company's cost of capital is 10 percent. Compute the following:
a. Net present value.
b. Payback.