Question
Vaughn Company has the following information about a potential capital investment: Initial investment $ 330,000 Annual cash inflow $ 76,000 Expected life 8 years Cost
Vaughn Company has the following information about a potential capital investment:
| Initial investment | $ 330,000 |
|---|---|
| Annual cash inflow | $ 76,000 |
| Expected life | 8 years |
| Cost of capital | 15% |
Required:
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.)
Note: Use appropriate factor(s) from the tables provided. Round the final answer to nearest whole dollar.
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Auditing and Assurance Services An Applied Approach
Authors: Iris Stuart
1st edition
73404004, 978-0073404004
