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Porus Corp has provided the following data concerning a four year investment project that it is considering: Initial Investment in equipment Annual cash flows Salvage
Porus Corp has provided the following data concerning a four year investment project that it is considering: Initial Investment in equipment Annual cash flows Salvage value of equipment at the end of the project $ 520,000 $ 150.000 per year $ 12,000 If the company's discount rate is 12%, the net present value of the project is closest to: (factors from Exhibit 12B-1 and Exhibit 12B-2 for an interest rate of 12% are provided below). Periods Present Value of $1 2 3 0 0 0.893 .797 .712 0.636 Present Value of an Annuity of $1 0.893 1.690 2.402 3.037 4 o o $164300) o $(56668) o $58512
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