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Stomberg Corporation has provided the following data concerning an investment project that it is considering: Initial investment $ 550,000 Annual cash flow $ 180,000 per
Stomberg Corporation has provided the following data concerning an investment project that it is considering:
Initial investment | $ 550,000 | |
---|---|---|
Annual cash flow | $ 180,000 | per year |
Salvage value at the end of the project | 14,000 |
Click here to view Exhibit 14B-1 Links to an external site. and Exhibit 14B-2 Links to an external site., to determine the appropriate discount factor(s) using the tables provided.
The life of the project is 4 years. The companys discount rate is 10%. The net present value of the project is closest to:
A. $184,000
B. $579,982
C. $29,982
D. $20,420
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