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Brief Exercise 12-3 Thunder Corporation, an amusement park, is considering a capital investment in a new exhibit. The exhibit would cost $228,365 and have an
Brief Exercise 12-3 Thunder Corporation, an amusement park, is considering a capital investment in a new exhibit. The exhibit would cost $228,365 and have an estimated useful life of 12 years. It will be sold for $63,000 at that time. (Amusement parks need to rotate exhibits to keep people interested.) It is expected to increase net annual cash flows by $30,000. The company's borrowing rate is 8%. Its cost of capital is 10%. Click here to view PV table. exhibitiseeexhib is 10%, ackhmusementpartaneedt rotat Calculate the net present value of this project to the company and determine whether the project is acceptable. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round present value answer to 0 decimal places, e.g. 125.) Net present value The project acceptable
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