Question
Vaughn Company has the following information about a potential capital investment: Initial investment $ 460,000 Annual cash inflow $ 78,000 Expected life 10 years Cost
Vaughn Company has the following information about a potential capital investment:
| Initial investment | $ | 460,000 |
| Annual cash inflow | $ | 78,000 |
| Expected life | 10 years | |
| Cost of capital | 10% | |
1. Calculate the net present value of this project. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Round the final answer to nearest whole dollar.)
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Managerial Accounting
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
2nd edition
9780077493677, 78025516, 77493672, 9780077826482, 978-0078025518
