Question
A capital investment has an initial cost of $566,000. At the end of each of the next 9 years, it is expected to produce cash
A capital investment has an initial cost of $566,000. At the end of each of the next 9 years, it is expected to produce cash inflows of $143,000 and cash outflows of $53,000. After 9 years, it is expected to have a residual value of $17,000.
Using a discount rate of 7%, what is this investment's net present value?
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Auditing and Assurance Services An Applied Approach
Authors: Iris Stuart
1st edition
73404004, 978-0073404004
