Question
The Fitness Center is considering including a treadmill in this year's capital budget. The cash outlay for the treadmill is $1,530. The firm's cost of
The Fitness Center is considering including a treadmill in this year's capital budget. The cash outlay for the treadmill is $1,530.
The firm's cost of capital is 7.3%.
After-tax cash flows, including depreciation, are as shown in the table below. Calculate the net present value (NPV) for this project.
| End of Year | Cash Flow |
|
| 1 | $595 | |
| 2 | 595 | |
| 3 | 595 | |
| 4 | 595 | |
| 5 | 595 |
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International Finance Transactions Policy And Regulation
Authors: Hal Scott, Anna Gelpern
23rd Edition
1647084105, 978-1647084103
