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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 $ 400,000
Annual cash inflow $ 86,000
Expected life 8 years
Cost of capital 13%

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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