Question
The following data pertain to an investment proposal (Ignore income taxes.): Cost of the investment $ 36,000 Annual cost savings $ 11,000 Estimated salvage value
The following data pertain to an investment proposal (Ignore income taxes.):
| Cost of the investment | $ | 36,000 | |
| Annual cost savings | $ | 11,000 | |
| Estimated salvage value | $ | 4,000 | |
| Life of the project | 5 | years | |
| Discount rate | 13 | % | |
The net present value of the proposed investment is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Multiple Choice
-
$21,000
-
$2,172
-
$2,687
-
$4,859
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Auditing With Information Technology Meeting The Challenge Of Cloud Computing Unstructured Data And Intangible Assets
Authors: J. Christopher Westland
1st Edition
149044873X, 978-1490448732
