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(SHOW YOUR WORK) West End Co. is looking into a new project. The cost to begin the project will be $150,000. The company requires a
(SHOW YOUR WORK)
West End Co. is looking into a new project. The cost to begin the project will be $150,000. The company requires a 12% rate of return. The project is expected to generate $30,000 of revenue the first year, $50,000 the second year, $75,000 the third year, and $45,000 in the last year. Use the present value table below to find the net present value of the investment.
Present value of $1 at Compound Interest Year 10% 12% 15% 1 0.909 0.893 0.870 2 0.826 0.797 0.756 3 0.751 0.721 0.658 4 0.683 0.636 0.572 0.621 0.567 0.497 0.564 0.507 0.432 0.513 0.452 0.376 0.467 0.404 0.327 9 0.424 0.36 0.284 10 0.386 0.322 0.247Step by Step Solution
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