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Caledonia Products
Essay specific features
Written by:
Annie Y
Date added:
June 7, 2016
Level:
University
Grade:
A
No of pages / words:
5 / 1173
Was viewed:
10322 times
Rating of current essay:
Essay content:
Caledonia Products have both projects A and B at an equal negative value of ($100,000) in the first year at an 11% rate of return.
Project
A Year UNDISCOUNTED FREE CASH FLOWS PVIF * 11%, n DISCOUNTED FREE CASH FLOWS CUMULATIVE DISCOUNTED FREE CASH FLOWS
0 ($100,000) 1.0 ($100,000) ($100,000)
1 $32,000 ...
displayed 300 characters
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Measuring the excess or shortfalls of cash flows is to measure the difference of the invested and market cost. This method is a good investment, if of course, it brings money to the company, after the discounted rate is calculated. The discounted rate is the project’s Cost of Capital. If the present cash flows and future cash flows are done correctly, this will give the company the New Present Value...
displayed 300 characters
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