Question
Nylan Manufacturing is considering two alternative investment proposals with the following details: Proposal X Proposal Y Investment $730,000 $514,000 Useful life 5 years 4 years
Nylan Manufacturing is considering two alternative investment proposals with the following details:
| Proposal X | Proposal Y | |
| Investment | $730,000 | $514,000 |
| Useful life | 5 years | 4 years |
| Estimated annual net cash inflows | $166,000 | $106,000 |
| Residual value | $60,000 | $0 |
| Depreciation method | Straightline | Straightline |
| Discount rate | 10% | 9% |
What is the total present value of future cash inflows from Proposal X?
Present value of annuity of $1:
A. $659,099
B. $666,566
C. $629,306
D. $821,523
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TS 16949 Insights From A Third Party Auditor With A Process Approach Audit Checklist
Authors: Karen Welch
1st Edition
0873896548, 978-0873896542
