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The following data pertain to an investment proposal (Ignore income taxes.): Cost of the investment $ 35,000 Annual cost savings $ 12,000 Estimated salvage value
The following data pertain to an investment proposal (Ignore income taxes.):
| Cost of the investment | $ 35,000 |
|---|---|
| Annual cost savings | $ 12,000 |
| Estimated salvage value | $ 6,000 |
| Life of the project | 5 Years |
| Discount rate | 18% |
The net present value of the proposed investment is closest to:
Multiple Choice
$2,622
$5,146
$2,524
$31,000
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Financial Accounting Theory And Analysis Text And Cases
Authors: Richard G. Schroeder, Myrtle W. Clark, Jack M. Cathey
9th Edition
9780470128817
