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Question 1 of 50 > View Policies -/5 E! Current Attempt in Progress Liam Bat became a baseball enthusiast at a very early age.
Question 1 of 50 > View Policies -/5 E! Current Attempt in Progress Liam Bat became a baseball enthusiast at a very early age. All of his baseball experience has provided him valuable knowledge of the sport, and he is thinking about going into the batting cage business. He estimates the construction of a state-of-the-art building and the purchase of necessary equipment will cost $920,000. Both the facility and the equipment will be depreciated over 12 years using the straight-line method and are expected to have zero salvage values. His required rate of return is 9% (present value factor of 7.16073). Estimated annual net income is as follows: Revenue Less: Utility cost $46,000 Supplies $14,000 Labor 147,000 Depreciation 76,000 $386,500 Other 44,500 327,500 Net income $59,000 Click here to view PV tables For this investment, calculate: 1 (a) The net present value. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to O decimal places, eg 5,275) (b) Net present value $ Save for Later Attempts: 0 of 1 used Submit Answer The parts of this question must be completed in order. This part will be available when you complete the part above
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