Question
Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): Investment required in equipment$30,000Annual cash inflows$6,000Salvage value of equipment$0Life of
Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.):
Investment required in equipment$30,000Annual cash inflows$6,000Salvage value of equipment$0Life of the investment15yearsRequired rate of return10%
The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment.
The net present value of the investment is:
A:$15,636
B:$24,000
C:$45,636
D:$60,000
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
