Managerial Accounting Assignment: Evaluating Investment with NPV

This managerial accounting assignment focuses on the Net Present Value (NPV) method for evaluating investment projects. The assignment includes a calculation of depreciation, cash flow projections (revenue, expenses, and taxes), and the application of a discounting factor to determine the NPV. The analysis concludes that a company should invest in a new limousine, as the NPV is positive, indicating a profitable investment. The assignment demonstrates the use of NPV for capital budgeting, including detailed calculations and a final investment recommendation. The solution references key academic sources to support the analysis and conclusions.