Question
Problem 22-06 Management of TSC, Inc. is evaluating a new $92,000 investment with the following estimated cash flows: Year Cash Flow 1 $ 8,000 2
Problem 22-06
Management of TSC, Inc. is evaluating a new $92,000 investment with the following estimated cash flows:
| Year | Cash Flow | ||
| 1 | $ | 8,000 | |
| 2 | 32,000 | ||
| 3 | 39,000 | ||
| 4 | 52,000 | ||
The firms cost of capital is 7 percent and the project will require that the firm spend $24,000 to terminate the project. Use Appendix B to answer the question. Use a minus sign to enter a negative value, if any. Round your answer to the nearest dollar.
The NPV of the investment is $ .
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Challenging Global Finance
Authors: Elizabeth Friesen
2012th Edition
0230348793, 978-0230348790
