Question 52 RESOURCES Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $125,368. It will have a useful life of 4 years and no salvage value. Annual Cash inflows would increase by $79,600, and annual cash outflows would increase by $39,700 The company's required rate of return is 10% Click here toview PW table. Calcul ate the net present value on this project. (If the net present value is negative, use elther a negative sign preceding the number eg -45 or parentheses eg (45) Round present value answer to 0 decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) uestion 3 Net present value uestion 7 Whether this project should be accepted?

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter10: Project Cash Flows And Risk
Section: Chapter Questions
Problem 16PROB
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Question 52 RESOURCES Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $125,368. It will have a useful life of 4 years and no salvage value. Annual Cash inflows would increase by $79,600, and annual cash outflows would increase by $39,700 The company's required rate of return is 10% Click here toview PW table. Calcul ate the net present value on this project. (If the net present value is negative, use elther a negative sign preceding the number eg -45 or parentheses eg (45) Round present value answer to 0 decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) uestion 3 Net present value uestion 7 Whether this project should be accepted? 

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