Question
M11-7 Calculating Net Present Value, Predicting Internal Rate of Return [LO 11-3, 11-4] Vaughn Company has the following information about a potential capital investment: Initial
M11-7 Calculating Net Present Value, Predicting Internal Rate of Return [LO 11-3, 11-4]
Vaughn Company has the following information about a potential capital investment:
| Initial investment | $ | 350,000 |
| Annual cash inflow | $ | 84,000 |
| Expected life | 6 years | |
| Cost of capital | 10% | |
1. Calculate the net present value of this project. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Round the final answer to nearest whole dollar.)
| Net Present Value |
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Auditing and Assurance Services
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws
6th edition
978-1259197109, 77632281, 77862341, 1259197107, 9780077632281, 978-0077862343
