Question
Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.) Investment required in equipment $630,000 Annual cash inflows $88,000 Salvage
Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.) |
| Investment required in equipment | $630,000 |
| Annual cash inflows | $88,000 |
| Salvage value | $0 |
| Life of the investment | 15 years |
| Discount rate | 10% |
| Click here to view Exhibit 13B-2 to determine the appropriate discount factor(s) using tables. |
The net present value on this investment is closest to: (Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount.) |
| $88,000 | |
| $39,328 | |
| $84,750 | |
| $630,000 |
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Working Papers Volume 1 For Needles/Powers/Crossons Financial And Managerial Accounting 8th
Authors: Belverd E. Needles
8th Edition
0618777237, 978-0618777235
