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Dax Company is considering an investment with the following information. a. Compute the net present value of the investment. b. Determine whether the investment
Dax Company is considering an investment with the following information. a. Compute the net present value of the investment. b. Determine whether the investment should be accepted or rejected on the basis of net present value. Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of the investment. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Enter net cash outflows as negative values.) Net Cashi Year Flows Present Value of 1 at 11% Present Value of Net Cash Flows Year 1 $ 8,900 0.9009 Year 2 16,800 0.8116 Year 3 12,900 0.7312 Totals $ 38,600 Initial investment (30,000) Net present value Required A Required B > Dax Company is considering an investment with the following information. a. Compute the net present value of the investment. b. Determine whether the investment should be accepted or rejected on the basis of net present value. Complete this question by entering your answers in the tabs below. Required A Required B Determine whether the investment should be accepted or rejected on the basis of net present value. Determine whether the investment should be accepted or rejected on the basis of net present value.
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