Van Dyke Company Is Evaluating a Capital Expenditure Proposal That

question 3

Essay

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

---

Definitions:

Mental Illness

A condition that affects a person's thinking, feeling, behavior, or mood, and may significantly impact daily functioning and quality of life.

Chemical Imbalances

A theory suggesting that mental health disorders are associated with changes in the biochemical balance in the brain.

DSM-IV-TR

The Diagnostic and Statistical Manual of Mental Disorders, Fourth Edition, Text Revision; a manual published by the American Psychiatric Association that lists different categories of mental disorders and the criteria for diagnosing them.

Axis V

Part of the DSM-IV used to evaluate a person's level of functioning; replaced in DSM-5 with a broader emphasis on individual assessments.