Question
Andy's Fishing Charters is considering the purchase of a new boat costing $60,000. The boat is expected to increase profits by $9,000 per year for
Andy's Fishing Charters is considering the purchase of a new boat costing $60,000. The boat is expected to increase profits by $9,000 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 $32,000.
Calculate the NPV of the boat using a cost of capital of 12%. Round your answer to the nearest dollar.
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Intermediate Accounting
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones
11th edition
978-0538467087, 9781111781262, 538467088, 1111781265, 978-0324659139
