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The following information pertains to an investment: Investment $240,000 Annual revenues $140,000 Annual variable costs $30,000 Annual fixed out-of-pocket costs $22,000 Salvage value $54,000 Discount
The following information pertains to an investment:
| Investment | $240,000 |
| Annual revenues | $140,000 |
| Annual variable costs | $30,000 |
| Annual fixed out-of-pocket costs | $22,000 |
| Salvage value | $54,000 |
| Discount rate | 16% |
| Expected life of project | 3 years |
Ignoring income taxes, the present value of the salvage value is
a.$34,614.
b.$46,440.
c.$31,346.
d.$35,500.
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Ethical Obligations and Decision Making in Accounting Text and Cases
Authors: Steven Mintz, Roselyn Morris
4th edition
978-1259543470, 1259543471, 978-1259730191
