Question
Moreno Corporation is considering investing in specialized equipment costing $525,000. The equipment has a useful life of five years and a residual value of $55,000.
Moreno Corporation is considering investing in specialized equipment costing $525,000. The equipment has a useful life of five years and a residual value of $55,000. Depreciation is calculated using the straight-line method. The expected net cash inflows from the investment are
Year 1 | $245,000 |
Year 2 | $190,000 |
Year 3 | $152,000 |
Year 4 | $112,000 |
Year 5 | $95,000 |
| $794,000 |
Moreno Corporation's required rate of return is 14%.
The net present value of the Moreno Corporation's investment is closest to
Select one:
a. $25,639 positive
b. $54,184 positive
c. $82,729 positive
d. $269,000 positive
how do i calculate this with a Calculator? BA II PLUS Texas instrument ? ??
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