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Shelby American Industries has gathered the following data on a proposed investment project: Investment required in equipment $240,000 Annual cash inflows Salvage value $75,000 Life

Shelby American Industries has gathered the following data on a proposed investment project: Investment required in equipment $240,000 Annual cash inflows Salvage value $75,000 Life of the investment Required rate of return $0 8 years 10% The company uses straight-line depreciation. Assume cash flows occur uniformly throughout a year except for the initial investment. The net present value for the investment is closest to: . $26,750 $240,024 O $160,000 O $58,800

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