The Net Present Value for Proposals X and Y Has

question 76

Essay

The net present value for Proposals X and Y has been calculated on the basis of the data given below. $$\begin{array} { l r r } & \text { Proposal X } & \text { Proposal Y } \\\text { Amount to be invested } & \$ 145,000 & \$ 280,000 \\\text { Total present value of net cash flow } & 172,000 & 320,000 \\\text { Net present value } & 27,000 & 40,000\end{array}$$ ​
Determine the present value index for each proposal.

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Definitions:

Mean

The average value in a set of numbers, calculated by dividing the sum of all values by the count of those values.

Set of Data

A collection of related pieces of information, often numerical, that are used for analysis.

Mathematical Average

Another term for mean, referring to the central value of a discrete set of numbers, specifically the sum of the values divided by the number of values.

Distribution

Refers to the way in which something is shared or exists across different areas or among various groups.