12 13 Coyne Corporation is evaluating a capital investment opportunity. This project would require an initial investment of $31,000 to purchase equipment. The equipment will have a residual value at the end of its life of $1.000 The useful life of the equipment is 4 years. The new project is expected to generate additional net cash inflows of $22.000 per year for each of the four years. Coyne's required rate of return is 12% The net present value of this project is closest to (Cack the icon to view the present value of $1 table) 131 (Cick the icon to view the present value of annuity of $1 table) OA. $18,656 OB. $35.814 OC. $36,450 OD. 547,734 Data table Present Value of $1 Periods 3 4 5 6 Data table 10% 0.751 0.683 3 4 5 6 0.621 0.564 Present Value of Annuity of $1 Periods 10% 2.487 E [0 3.170 3.791 4.355 12% 0712 0.636 0.567 0.507 Print Print 12% 2.402 3.037 3.605 4.111 Done Done 14% 0.675 0.592 0.519 0.456 14% 2.322 2.914 3.433 3.889 16% 0.641 0.552 0.476 0.410 16% 2.246 2.798 3.274 3.685 <- X ent is s requ requi
12 13 Coyne Corporation is evaluating a capital investment opportunity. This project would require an initial investment of $31,000 to purchase equipment. The equipment will have a residual value at the end of its life of $1.000 The useful life of the equipment is 4 years. The new project is expected to generate additional net cash inflows of $22.000 per year for each of the four years. Coyne's required rate of return is 12% The net present value of this project is closest to (Cack the icon to view the present value of $1 table) 131 (Cick the icon to view the present value of annuity of $1 table) OA. $18,656 OB. $35.814 OC. $36,450 OD. 547,734 Data table Present Value of $1 Periods 3 4 5 6 Data table 10% 0.751 0.683 3 4 5 6 0.621 0.564 Present Value of Annuity of $1 Periods 10% 2.487 E [0 3.170 3.791 4.355 12% 0712 0.636 0.567 0.507 Print Print 12% 2.402 3.037 3.605 4.111 Done Done 14% 0.675 0.592 0.519 0.456 14% 2.322 2.914 3.433 3.889 16% 0.641 0.552 0.476 0.410 16% 2.246 2.798 3.274 3.685 <- X ent is s requ requi
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:12
Coyne Corporation is evaluating a capital investment opportunity. This project would require an initial investment of $31,000 to purchase
equipment. The equipment will have a residual value at the end of its life of $1,000 The useful life of the equipment is 4 years. The new
project is expected to generate additional net cash inflows of $22,000 per year for each of the four years. Coyne's required rate of return is
12% The net present value of this project is closest to
(Cack the icon to view the present value of $1 table)
(Click the icon to view the present value of annuity of $1 table)
OA. 518,656
OB. $35.814
OC. $36,450
OD. $47.734
Data table
Present Value of $1
Periods
3
4
5
6
Data table
10%
0.751
0.683
0.621
0.564
Present Value of Annuity of $1
Periods
3
4
5
6
10%
2.487
3.170
3.791
4.355
D
D
Print
12%
0712
0.636
0.567
0.507
Print
12%
2.402
3.037
3.605
4.111
Done
Done
14%
0.675
0592
0.519
0.456
14%
2.322
2.914
3,433
3.889
111
16%
0.641
0.552
0.476
0.410
16%
2.246
2.798
3274
3.685
ent is 4
-Xs requi
-X
require
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