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an 11. Use the partial chart below to determine the net present value of asset whose initial cost is $80,000 and will generate an annual

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an 11. Use the partial chart below to determine the net present value of asset whose initial cost is $80,000 and will generate an annual net cash flow of $12,000 for ten years. The discount rate or the cost of capital is 12%. Year 1 Year 2 Year 3 Year 4 Year 5 12% 0.89286 0.79719 0.71178 0.63552 0.56743 Year 6 Year 7 Year 8 Year 9 Year 10 0.50663 0.45235 0.40388 0.36061 0.32197 Should the company purchase the asset? Yes, No

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