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Calculate the NPV of an asset replacement given the following information: Investment = $180,000; salvage recovered now = $70,000; operating cash flows = $180,000; PV

Calculate the NPV of an asset replacement given the following information: Investment = $180,000; salvage recovered now = $70,000; operating cash flows = $180,000; PV of salvage forgone = $5,500; PV of salvage recovered = $14,000; CCATS = $35,000.

Multiple Choice

  • $119,500

  • $121,500

  • $115,500

  • $113,500

  • $117,500

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