Question
The company has a project with a 5-year life that requires an initial investment of $190,000, and is expected to yield annual cash flows of
The company has a project with a 5-year life that requires an initial investment of $190,000, and is expected to yield annual cash flows of $64,000. What is the net present value of the project if the required rate of return is set at 12%?
Calculation Steps
Present Value of an Annuity of $1 at Compound Interest.
Net Present Value=($x)-$
Note: Round your answer to the nearest whole dollar.
What NPV does the previous calculation yield?$
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Managerial Accounting
Authors: John J Wild, Ken W. Shaw, Barbara Chiappetta
7th edition
1260482936, 978-1260482935
