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Brief Exercise 26-3 Thunder Corporation, an amusement park is considering a capital investment in a new exhibit. The exhibit would cost $20 59 and have
Brief Exercise 26-3 Thunder Corporation, an amusement park is considering a capital investment in a new exhibit. The exhibit would cost $20 59 and have an estimated useful of 2 years. It will be sold for $69,200 at that time. (Amusement parks need to rotate exhibits to keep people interested.) It is expected to increase net annual cash flows by $26,300. The company's borrowing rate is 8%. Its cost of capital is 10%. ClickheretoviewPV table 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 o decimal places, e.g. 125.) Net present value s The projec acceptable is is not LINK TO TEAI
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