Question
ces Quail Company is considering buying a food truck that will yield net cash inflows of $10,000 per year for seven years. The truck
ces Quail Company is considering buying a food truck that will yield net cash inflows of $10,000 per year for seven years. The truck costs $42,000 and has an estimated $6,900 salvage value at the end of the seventh year. (PV of $1. FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Enter negative net present values, if any, as negative values. Round your present value factor to 4 decimals. What is the net present value of this investment assuming a required 12% return? Present Value of Net Cash Flows = $ 0 0 Net Cash Flows x PV Factor Years 1-7 $ 10,000 x Year 7 salvage $ 6,900 x = Totals = Initial investment Net present value = 42,000
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Fundamental Accounting Principles
Authors: John J Wild, Ken Shaw
25th Edition
1260247988, 978-1260247985
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