Question
(Ignore income taxes in this problem.) Farah Corporation has provided the following data concerning a proposed investment project: Initial investment $ 440,000 Life of the
(Ignore income taxes in this problem.) Farah Corporation has provided the following data concerning a proposed investment project:
| Initial investment | $ | 440,000 | ||
| Life of the project | 8 years | |||
| Working capital required | $ | 14,000 | ||
| Annual net cash inflows | $ | 88,000 | ||
| Salvage value | $ | 44,000 | ||
The company uses a discount rate of 11%. The working capital would be released at the end of the project. |
| Required: |
Compute the net present value of the project. |
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Managerial Accounting Tools For Business Decision Making Wileyplus Lms Student Package
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
8th Edition
1119390249, 978-1119390244
