Question
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 13B-1 and Exhibit 13B-2, 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:
Multiple Choice
$20,420
$184,000
$29,982
$579,982
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Managerial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
13th edition
978-1285868806, 1285868803, 978-1305691254, 978-1305465640, 1305465644, 978-1285866307
