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Quail Company is considering buying a food truck that will yield net cash inflows of $13,200 per year for seven years. The truck costs
Quail Company is considering buying a food truck that will yield net cash inflows of $13,200 per year for seven years. The truck costs $49,000 and has an estimated $6,800 salvage value at the end of the seventh year. (PV of $1. EV of $1. PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided. Enter negative net present values, if any, as negative values. Round your present value factor to 4 decimals.) What is the net present value of this investment assuming a required 8% return? Present Value of Net Cash Flows x PV Factor Net Cash Flows Years 1-7 $ 13,200 x $ Year 7 salvage $ 6,800 x 0 Totals 1 Initial investment Net present value
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