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Sheridan Corporation, an amusement park, is considering a capital investment in a new exhibit. The exhibit would cost $177,785 and have an estimated useful life
Sheridan Corporation, an amusement park, is considering a capital investment in a new exhibit. The exhibit would cost $177,785 and have an estimated useful life of 8 years. It can be sold for $60,000 at the end of that time. (Amusement parks need to rotate exhibits to keep people interested.) It is expected to increase net annual cash flows by $27,300. The company's borrowing rate is 8%. Its cost of capital is 10%. Click here to view the factor table. Calculate the net present value of this project to the company and determine whether the project is acceptale is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round present value answer to 0 decimal places, e.g. 125.)
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