Question
Firefox Company is considering the following investment proposal: Initial investment: Depreciable assets (straight-line) $36,000 Working capital 4,000 Operations (per year for 4 years): Cash receipts
Firefox Company is considering the following investment proposal:
| Initial investment: |
|
|
| Depreciable assets (straight-line) | $36,000 |
|
| Working capital | 4,000 |
| Operations (per year for 4 years): |
|
|
| Cash receipts | $25,000 |
|
| Cash expenditures | 11,000 |
| Disinvestment: |
|
|
| Salvage value of equipment | $ 3,000 |
|
| Recovery of working capital | 4,000 |
| Discount rate: | 10 percent |
Additional information for interest rate of 10 percent and four time periods:
| Present value of $1 | 0.68301 |
| Present value of an annuity of $1 | 3.16987 |
What is the net present value for the investment?
Select one:
A. $ 4,781
B. $18,322
C. $44,378
D. $ 9,159
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A Standardized Financial Statement Auditing Framework For The Cloud Ecosystem Standards Principle Rules Volume 1
Authors: Cpa Citp Kilby
1st Edition
1636612237, 978-1636612232
