Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Quail Company is considering buying a food truck that will yield net cash inflows of $ 1 2 , 6 0 0 per year for

Quail Company is considering buying a food truck that will yield net cash inflows of $12,600 per year for seven years. The truck costs $44,000 and has an estimated $6,300 salvage value at the end of the seventh year. (PV of $1,FV of $1, PVA of $1, and FVA 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?
\table[[,Net Cash Flows,x PV Factor,=,\table[[Present Value of],[Net Cash Flows]]],[Years 1-7,,,=,],[,,=,,],[Totals,=,,,],[,,=,,],[Net present value,=,,,]]
image text in transcribed

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

Question

Define Administration?

Answered: 1 week ago