23. ABC Inc. has provided the following data concerning an investment project that has been proposed: Initial investment. $190.000 Annual cash receipts $1 14,000 Life of the project years Annual cash expenses ........ $51,000 Salvage value .....! $10.000 The company's tax rate is 30%. For tax purposes, the entire initial investment will be depreciated over 7 years without any reduction for salvage value. The company uses a discount rate of 19%. The net present value of the project is closest to:Present Value of $1 Periods 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 0.980 0.962 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.961 0.925 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.694 0.942 0.889 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 0.924 0.855 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 0.906 0.822 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 0.888 0.790 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 7 0.871 0.760 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 00 0.853 0.731 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 0.837 0.703 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 10 0.820 0.676 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 11 0.804 0.650 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 12 0.788 0.625 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 13 0.773 0.601 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 14 0.758 0.577 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 15 0.743 0.555 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 Present Value of a Series of $1 Cash Flows Periods 2% 4% 6% 3% 10% 12% 14% 16% 18% 20% 0.980 0.962 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 1.942 1.886 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 2.884 2.775 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 GUIDWNH 3.808 3.630 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 4.713 4.452 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 5.601 5.242 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 7 6.472 6.002 5.582 5.206 4.868 4.564 4.288 4.039 3.812 3.605 7.325 6.733 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 8.162 7.435 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 10 8.983 8.111 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 11 9.787 8.760 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 12 10.575 9.385 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 13 11.348 9.986 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 14 12.106 10.563 9.295 8.244 7.367 6.628 6.002 5.468 5.008 4.611 15 12.849 11.118 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675
