(lgnore income taxes in this problem.) Your Company's cost of capital is 9%, The project being consided has an eight year life. What is the net present value of project? Cost of equipment $105,000 $ 65,000 $ 25,000 Working capital needed Annual cost savings O ($31,625) O $9,130 O $1,005 O $3,947 O (56,535)

(lgnore income taxes in this problem.) Your Company's cost of capital is 9%, The project being consided has an eight year life. What is the net present value of project? Cost of equipment $105,000 $ 65,000 $ 25,000 Working capital needed Annual cost savings O ($31,625) O $9,130 O $1,005 O $3,947 O (56,535)

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 22E

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