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(Ignore income taxes in this problem.) The following data pertain to an investment proposal: Cost of the investment $68,000 Annual cost savings $20,000 Estimated salvage
(Ignore income taxes in this problem.) The following data pertain to an investment proposal:
Cost of the investment | $68,000 |
Annual cost savings | $20,000 |
Estimated salvage value | $6,000 |
Life of the project | 5 years |
Discount rate | 13% |
Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using table. |
The net present value of the proposed investment is closest to: (Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount.) |
$5,598
$2,340
$3,258
$42,000
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