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Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.) Investment required in equipment $530,000 Annual cash inflows $74,000 Salvage
Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.) |
Investment required in equipment | $530,000 |
Annual cash inflows | $74,000 |
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.) |
$74,000
$100,036
$70,750
$530,000
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