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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.) Year Net Cash Flows Present Value of 1 at 12% Present Value of Net Cash Flows Year 1 $ 9,900 0.8929 Year 2 16,200 0.7972 Year 3 13,900 0.7118 Totals $ 40,000 Initial investment (30,000) Net present value
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