TEXT:

Sunland Company is considering a long-term investment project called ZIP. ZIP will require an investment of $131,100. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,900, and annual cash outflows would increase by $38,100. The companys required rate of return is 11%. Click here to view the factor table. Calculate the net present value on this project. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round present value answer to 0 decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

Net present value: ?

The project should be: Accepted

Please find the factor table below to assist with the question:

Your answer is partially correct. Sunland Company is considering a long-term investment project called ZIP. ZIP will require an investment of $131,100. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,900, and annual cash outflows would increase by $38,100. The company's required rate of return is 11%. Click here to view the factor table. Calculate the net present value on this project. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round present value answer to 0 decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value Whether this project should be accepted? The project should be TABLE 1 Future Value of 1 TABLE 2 Future Value of an Annuity of 1 TABLE 3 Present Value of 1 TABLE 4 Present Value of an Annuity of 1