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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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