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A company has gathered the following data on a proposed investment project: Investment required in equipment now: $400,000 Salvage Value $0 Life of the investment
A company has gathered the following data on a proposed investment project:
Investment required in equipment now: $400,000 Salvage Value $0 Life of the investment 10 years Annual cash inflow $80,000 Discount rate 10%
Use the appropriate factor(s) to calculate the net present value of the investment that is closest to:
Factors: Present Value of $ 0.3855 Present Value of an annuity 6.1446 Future Value of $ 2.593 Future Value of an annuity 15.9374
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