Question
A contract is estimated to yield net annual returns of 9,600 for six years. To secure the contract, an immediate outlay of 40,000 is required.
A contract is estimated to yield net annual returns of 9,600 for six years. To secure the contract, an immediate outlay of 40,000 is required. Interest is 10% compounded annually
Calculate the net present value (NPV) of the contract and determine whether the project should be accepted or rejected according to the net present value criterion
The net present value of the project is _______
(Round the final answer to the nearest dollar as needed. Round all intermediate values to six decimal places,
Should the project be accepted or rejected?
The project should be _________
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