Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help Asapp!!! Bridgeport Company accumulates the following data for a proposed capital investment: cash cost, $197,902; net annual cash flows. $44.700; present value factor

Please help Asapp!!! image text in transcribed
image text in transcribed
Bridgeport Company accumulates the following data for a proposed capital investment: cash cost, $197,902; net annual cash flows. $44.700; present value factor of cash inflows for 10 years, 4.66 (rounded). Determine the net present value, and indicate whether the company should make the investment. (If the net present volue is nezotive, use either a negative sign preceding the number es. -45 or parentheses es. (45)) Net present value The investment be made. Indigo Corporation is considering investing in a new facility, The estimated cost of the facility is $2,340,000. It will be used for 12 years, then sold for $811,000. The facility will generate annual cash inflows of $433,000 and will need new annual cash outflows of $202,000. The company has a required rate of return of 5%. Calculate the internal rate of return on this project, and discuss whether the project should be accepted. (Round onswer to 0 decimol places, es 13\%)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions