Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of the investment. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Enter net cash outflows as negative values.) Year 1 Year 2 Year Year 3 Totals Initial investment Net present value Net Cash Flows $ $ 9,400 11,400 13,400 34,200 Present Value of 1 at 12% 0.8929 0.7972 0.7118 Present Value of Net Cash Flows (29,000)
Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of the investment. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Enter net cash outflows as negative values.) Year 1 Year 2 Year Year 3 Totals Initial investment Net present value Net Cash Flows $ $ 9,400 11,400 13,400 34,200 Present Value of 1 at 12% 0.8929 0.7972 0.7118 Present Value of Net Cash Flows (29,000)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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Transcribed Image Text:Required A Required B
Determine whether the investment should be accepted or rejected on the basis of net present value.
Determine whether the investment should be accepted or rejected on the basis of net present value.
< Required A
Required B >
Transcribed Image Text:Dax Company is considering an investment with the following information.
a. Compute the net present value of the investment.
b. Determine whether the investment should be accepted or rejected on the basis of net present value.
Complete this question by entering your answers in the tabs below.
Required A Required B
Compute the net present value of the investment. (Do not round intermediate calculations. Round your final answers to the
nearest whole dollar. Enter net cash outflows as negative values.)
Year
Year 1
Year 2
Year 3
Totals
Initial investment
Net present value
Net Cash Present Value
Flows
of 1 at 12%
$
$
9,400
11,400
13,400
34,200
0.8929
0.7972
0.7118
Present Value of
Net Cash Flows
Required A
(29,000)
Required B
>
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