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	$	310,000
Annual cash inflow	$	75,000
Expected life		7 years
Cost of capital		14%

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.)

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