The following data pertain to an investment proposal (Ignore income taxes.): Cost of the investment $ 52,000 Annual cost savings $ 16,000 Estimated salvage value $ 8,000 Life of the project 5 years Discount rate 13 % Click here to view Exhibit 13B-1 and Exhibit 13B-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.)
The following data pertain to an investment proposal (Ignore income taxes.): Cost of the investment $ 52,000 Annual cost savings $ 16,000 Estimated salvage value $ 8,000 Life of the project 5 years Discount rate 13 % Click here to view Exhibit 13B-1 and Exhibit 13B-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.)
Financial & Managerial Accounting
13th Edition
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter10: Current Liabilities And Payroll
Section: Chapter Questions
Problem 10.23EX
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The following data pertain to an investment proposal (Ignore income taxes.):
Cost of the investment | $ | 52,000 | |
Annual cost savings | $ | 16,000 | |
Estimated salvage value | $ | 8,000 | |
Life of the project | 5 | years | |
Discount rate | 13 | % | |
Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.
The
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