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The following data pertain to an investment proposal: Required investment $80,000 Annual cost savings $18,000 Projected life of investment 8 years Projected salvage value $4,000
The following data pertain to an investment proposal:
| Required investment | $80,000 |
| Annual cost savings | $18,000 |
| Projected life of investment | 8 years |
| Projected salvage value | $4,000 |
| Required rate of return | 15% |
Ignoring income taxes, how much is the net present value of the proposed investment?
| A. $771 |
| B. $2,079 |
| C. $82,079 |
| D. $80,771 |
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Managerial Accounting And Analysis In Multinational Enterprises
Authors: H. Peter Holzer, Hanns Martin W. Schoenfeld
1st Edition
0899250874, 978-0899250878
