Question
Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.) Investment required in equipment $540,000 Annual cash inflows $78,000 Salvage
| Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.) |
| Investment required in equipment | $540,000 |
| Annual cash inflows | $78,000 |
| Salvage value | $0 |
| Life of the investment | 20 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.) |
| $74,750 | |
| $124,092 | |
| $78,000 | |
| $540,000 |
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Auditing A Practical Manual For Auditors
Authors: Lawrence Robert Dicksee
1st Edition
1360462546, 978-1360462547
