If Quail Company invests $50,000 today, it can expect to receive $10,000 at the end extra $6,000 at the end of the seventh year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) What is the net present value of this investment assuming a required 10% return on investments? Cash Flow Annual cash flow Additional cash flow Chart Values are Based on: Select Chart Present Value of an Annuity of 1 Present Value of 1 Present value of cash inflows Immediate cash outflows Net present value n= j= 10 % $ $ = x PV Factor 4.8684 = 0.5132 = Amount 10,000 x 6,000 X Present Value $ 48,684 3,079 51,763 50,000 $

Financial And Managerial Accounting
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ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
Section: Chapter Questions
Problem 3CMA
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What is n= , and the net present value
If Quail Company invests $50,000 today, it can expect to receive $10,000 at the end of each year for the next seven years, plus an
extra $6,000 at the end of the seventh year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables
provided. Round your present value factor to 4 decimals.)
What is the net present value of this investment assuming a required 10% return on investments?
Cash Flow
Annual cash flow
Additional cash flow
Chart Values are Based on:
Select Chart
Present Value of an Annuity of 1
Present Value of 1
Present value of cash inflows
Immediate cash outflows
Net present value
n=
i=
10 %
Amount x PV Factor
10,000 X
4.8684 =
6,000 X
0.5132 =
$
$
< Prev
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Present Value
$ 48,684
3,079
51,763
50,000
$
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G
O
Transcribed Image Text:If Quail Company invests $50,000 today, it can expect to receive $10,000 at the end of each year for the next seven years, plus an extra $6,000 at the end of the seventh year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) What is the net present value of this investment assuming a required 10% return on investments? Cash Flow Annual cash flow Additional cash flow Chart Values are Based on: Select Chart Present Value of an Annuity of 1 Present Value of 1 Present value of cash inflows Immediate cash outflows Net present value n= i= 10 % Amount x PV Factor 10,000 X 4.8684 = 6,000 X 0.5132 = $ $ < Prev 3 of 5 ‒‒‒ Present Value $ 48,684 3,079 51,763 50,000 $ Next > G O
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