Whispering Winds Company is considering a long-term investment project called ZIP ZIP will require an investment of $130,000. It will have a useful life of four years and no salvage value. Annual cash inflows would increase by $81,000, and annual cash outflows would increase by $-40.500. In addition, the company's required rate of return is 10% Click here to view the factor table (a) Calculate the net present value on this project. Of the answer is negative, use either a negative sign preceding the number eg -5,275 or parentheses es (5,275). For calculation purposes, use 5 decimal places as displayed in the factor table provided, eg. 1.25124 and final answer to 0 decimal places, eg. 5,275) Net present value $ Identify whether the project should be accepted or rejected. The project should be
Whispering Winds Company is considering a long-term investment project called ZIP ZIP will require an investment of $130,000. It will have a useful life of four years and no salvage value. Annual cash inflows would increase by $81,000, and annual cash outflows would increase by $-40.500. In addition, the company's required rate of return is 10% Click here to view the factor table (a) Calculate the net present value on this project. Of the answer is negative, use either a negative sign preceding the number eg -5,275 or parentheses es (5,275). For calculation purposes, use 5 decimal places as displayed in the factor table provided, eg. 1.25124 and final answer to 0 decimal places, eg. 5,275) Net present value $ Identify whether the project should be accepted or rejected. The project should be
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 13E: Buena Vision Clinic is considering an investment that requires an outlay of 600,000 and promises a...
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