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Quail Company is considering buying a food truck that will yield net cash inflows of $10,800 per year for seven years. The truck costs
Quail Company is considering buying a food truck that will yield net cash inflows of $10,800 per year for seven years. The truck costs $40,000 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 10% return? Years 1-7 Year 7 salvage Totals Initial investment Net present value Present Value of Net Cash Flows X PV Factor = Net Cash Flows $ 10,800 x = $ 0 EA $ 6,300 x II 0 = II 40,000
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