Exercise 9-8

An investment that costs $78,000 will return $38,000 per year for 9 years. Determine the net present value of the investment if the required rate of return is 10 percent. (Ignore taxes.) (Round present value factor calculations to 4 decimal places, e.g. 1.2151 and final answer to 0 decimal places, e.g. 125.Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Net present value

$

Should the investment be undertaken?

The investment

should notshould

be undertaken.