Question
Lindas Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows: Initial investment (2 limos) $ 660,000
Lindas Luxury Travel (LLT) is considering the purchase of two Hummer limousines. Various information about the proposed investment follows:
| Initial investment (2 limos) | $ | 660,000 | ||||||||||||||||||||||||||||||||||||
| Useful life | 10 | years | ||||||||||||||||||||||||||||||||||||
| Salvage value | $ | 200,000 | ||||||||||||||||||||||||||||||||||||
| Annual net income generated | 53,460 | |||||||||||||||||||||||||||||||||||||
| LLTs cost of capital | 13 | % | ||||||||||||||||||||||||||||||||||||
| The cash outflow Present value is $660,000. ?What is the present value of the cash inflow for the next 10 years? ?What is the present value of the cash inflow on the tenth year? ?What is the total net present value?
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Principles Of Knowledge Auditing Foundations For Knowledge Management Implementation
Authors: Patrick Lambe
1st Edition
0262545039, 978-0262545037
