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Park Co. is considering an investment that requires immediate payment of $30,455 and provides expected cash inflows of $9,400 annually for four years. Park Co.
Park Co. is considering an investment that requires immediate payment of $30,455 and provides expected cash inflows of $9,400 annually for four years. Park Co. requires a 7% return on its investments.
1-a. What is the net present value of this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.)
Cash Flow | Select Chart | Amount | x | PV Factor | = | Present Value |
Annual cash flow | = | $0 | ||||
Net present value |
1-b. Based on NPV alone, should Park Co. invest?
Yes
No
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