Van Dyke Company is evaluating a capital expenditure proposal that has the following predicted cash flows: $\begin{array}{ll}
\text { Original investment }&£ 45,000\\
\text { Year 1 } & £ 17,500 \
\text { Year 2 } & 25,000 \
\text { Year 3 } & 15,000\
\
\text { Salvage value}&-0-\\
\text { Discount rate}&14\%
\end{array}$
a.Net present value of the investment
b.Proposal's internal rate of return
c.Payback period

Question

Van Dyke Company is evaluating a capital expenditure proposal that has the following predicted cash flows: $\begin{array}{ll}
\text { Original investment }&£ 45,000\\
\text { Year 1 } & £ 17,500 \
\text { Year 2 } & 25,000 \
\text { Year 3 } & 15,000\
\
\text { Salvage value}&-0-\\
\text {  Discount rate}&14\%
\end{array}$ 
a.Net present value of the investment
b.Proposal's internal rate of return
c.Payback period

Quizplus · Accepted Answer

The Answer of Van Dyke Company is evaluating a capital expenditure proposal that has the following predicted cash flows: $\begin{array}{ll}
\text { Original investment }&£ 45,000\\
\text { Year 1 } & £ 17,500 \
\text { Year 2 } & 25,000 \
\text { Year 3 } & 15,000\
\
\text { Salvage value}&-0-\\
\text {  Discount rate}&14\%
\end{array}$ 
a.Net present value of the investment
b.Proposal's internal rate of return
c.Payback period

Van Dyke Company Is Evaluating a Capital Expenditure Proposal That