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Cost of the investment $ 32,000   Annual cost savings  $ 9,000   Estimated salvage value $ 3,000   Life of the project 5 years Discount rate 10%     Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided.   The net present value of the proposed investment is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount.)   Multiple Choice   $2,119   $3,982   $1,863   $20,000

Cost of the investment $ 32,000   Annual cost savings  $ 9,000   Estimated salvage value $ 3,000   Life of the project 5 years Discount rate 10%     Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided.   The net present value of the proposed investment is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount.)   Multiple Choice   $2,119   $3,982   $1,863   $20,000

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 6MAD: Assume Home Garden Inc. in MAD 26-5 assigns the following probabilities to the estimated...
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Cost of the investment $ 32,000  
Annual cost savings  $ 9,000  
Estimated salvage value $ 3,000  
Life of the project 5 years
Discount rate 10%  

 

Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided.

 

The net present value of the proposed investment is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

 

Multiple Choice
  •  
    $2,119
  •  
    $3,982
  •  
    $1,863
  •  
    $20,000
The following data pertain to an investment proposal (Ignore income taxes.): Cost of the investment Annual cost savings Estimated salvage value Life of the project Discount rate Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. Multiple Choice The net present value of the proposed investment is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount.) O O O $2,119 $3,982 $ 32,000 $ 9,000 $ 3,000 $1.863 5 years 10% $20,000
Transcribed Image Text:The following data pertain to an investment proposal (Ignore income taxes.): Cost of the investment Annual cost savings Estimated salvage value Life of the project Discount rate Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. Multiple Choice The net present value of the proposed investment is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount.) O O O $2,119 $3,982 $ 32,000 $ 9,000 $ 3,000 $1.863 5 years 10% $20,000
The following data pertain to an investment proposal (Ignore income taxes.): Cost of the investment Annual cost savings Estimated salvage value Life of the project Discount rate Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. Multiple Choice The net present value of the proposed investment is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount.) O O O $2,119 $3,982 $ 32,000 $ 9,000 $ 3,000 $1.863 5 years 10% $20,000
Transcribed Image Text:The following data pertain to an investment proposal (Ignore income taxes.): Cost of the investment Annual cost savings Estimated salvage value Life of the project Discount rate Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. Multiple Choice The net present value of the proposed investment is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount.) O O O $2,119 $3,982 $ 32,000 $ 9,000 $ 3,000 $1.863 5 years 10% $20,000
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