Question
Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.) Investment required in equipment $680,000 Annual cash inflows $66,000 Salvage
| Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.) |
| Investment required in equipment | $680,000 |
| Annual cash inflows | $66,000 |
| Salvage value | $0 |
| Life of the investment | 20 years |
| Discount rate | 7% |
| 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.) |
| $62,750 | |
| $19,204 | |
| $66,000 | |
| $680,000 |
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Introduction To Managerial Accounting Hc 2002 Text Only
Authors: Folk
1st Edition
0071123350, 978-0071123358
