Question
Andy's Fishing Charters is considering the purchase of a new boat costing $80,000. The boat is expected to increase profits by $10,000 per year for
Andy's Fishing Charters is considering the purchase of a new boat costing $80,000. The boat is expected to increase profits by $10,000 per year for each of the next 8 years. After 4 years, the boat will require maintenance of $5,000. After the 8 years, the boat will be sold for $40,000.
Calculate the NPV of the boat using a cost of capital of 12%. Round your answer to the nearest dollar.
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Lessons In Corporate Finance
Authors: Paul Asquith, Lawrence A. Weiss
2nd Edition
1119537835, 978-1119537830
