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PLEASE HELP ME WITH MY HOMEWORK Initial investment Annual cash inflows Annual cash outflows Costs to rebuild Salvage value Estimated useful life Option A Option
PLEASE HELP ME WITH MY HOMEWORK
Initial investment Annual cash inflows Annual cash outflows Costs to rebuild Salvage value Estimated useful life Option A Option B $ 320,000 $ 454,000 150,000 160,000 70,000 75,000 120,000 0 24,000 years 8 years Required: Calculate NPV. (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. Negative amounts should be indicated by a minus sign. Round your "Present Values" to the nearest whole dollar amount.) Option A: Year Cash Flows Present Value PV factor 11% Initial Investment 0 1-8 4 Annual Cash Flows Cost to Rebuild Salvage Net Present Value 8 Option B: Year Cash Flows Present Value PV factor 11% 0 Initial Investment Annual Cash Flows 1-8 Cost to Rebuild 4 8 Salvage Net Present Value Determine which option Tulsa should select? Option A O Option BStep by Step Solution
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