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The following data pertain to an investment proposal (Ignore income taxes) Amount $80,000 $25,000 Description Cost of the investment Annual Cost Savings Estimated salvage value
The following data pertain to an investment proposal (Ignore income taxes) Amount $80,000 $25,000 Description Cost of the investment Annual Cost Savings Estimated salvage value | Life of the project Discount rate $10,000 10 years 1896 Use the following selection from the present value tables, to calculate the net present value of the proposed investment. The net present value of the proposed investment is closest to: Present Value of $1 Present Value of an Annuity of $1 Period 996 1896 Period 996 1896 5 0.650 0.437 5 3.890 3.127 10 0.422 0.191 10 6.418 4.494 20 0.178 0.037 20 9.129 5.353 ($30,285) OA $34,260 B. $32,350 OC. $30,440
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