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Falcon Crest Aces (FCA), Incorporated, is considering the purchase of a small plane to use in its wing-walking demonstrations and aerial tour business. Various
Falcon Crest Aces (FCA), Incorporated, is considering the purchase of a small plane to use in its wing-walking demonstrations and aerial tour business. Various information about the proposed investment follows: Initial investment Useful life Salvage value Annual net income generated FCA's cost of capital $ 160,000 Assume straight line depreciation method is used. 10 years $ 20,000 $ 3,800 10% Help FCA evaluate this project by calculating each of the following: Required: 4. Recalculate FCA's NPV assuming the cost of capital is 3 percent. (Future Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided. Negative amount should be indicated by a minus sign. Round your final answer to the nearest whole dollar amount. Net Present Value
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