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Required information [The following information applies to the questions displayed below.] Falcon Crest Aces (FCA), Incorporated, is considering the purchase of a small plane
Required information [The following information applies to the questions displayed below.] Falcon Crest Aces (FCA), Incorporated, is considering the purchase of a small plane to use in its wing-walking demonstrations and aerial tour business. Various information about the proposed investment follows: Initial investment Useful life Salvage value $ 210,000 10 years $ 20,000 $ 4,800 7% Annual net income generated FCA's cost of capital Assume straight line depreciation method is used. Help FCA evaluate this project by calculating each of the following Required: 3. Net present value (NPV). (Future Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1) Note: Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round the final answer to nearest whole dollar.
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