Techno Corp. is considering developing new computer soft ware. The cost of development will be $675,000 and

Question:

Techno Corp. is considering developing new computer soft ware. The cost of development will be $675,000 and management expects the net cash flow from sale of the soft ware to be $195,000 for each of the next six years. If the is 14 percent, what is the of this project?

Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at... Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...