Current Attempt in Progress Your answer is partially correct. Wayne Company is considering a long-term investment project called ZIP ZIP will require an investment of $120,000, it will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,000, and annual cash outflows would increase by $40,000. The company's required rate of return is 12%. Click here to view PV table. Calculate the net present value on this project. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round present value answer to O decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value Whether this project should be accepted? The project should be accepted 1966
Current Attempt in Progress Your answer is partially correct. Wayne Company is considering a long-term investment project called ZIP ZIP will require an investment of $120,000, it will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,000, and annual cash outflows would increase by $40,000. The company's required rate of return is 12%. Click here to view PV table. Calculate the net present value on this project. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round present value answer to O decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value Whether this project should be accepted? The project should be accepted 1966
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Current Attempt in Progress
D
Your answer is partially correct.
Wayne Company is considering a long-term investment project called ZIP ZIP will require an investment of $120,000. It will have a
useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,000, and annual cash outflows would increase by
$40,000. The company's required rate of return is 12%. Click here to view PV table.
Calculate the net present value on this project. (If the net present value is negative, use either a negative sign preceding the number eg -45 or
parentheses eg (45). Round present value answer to 0 decimal places, eg. 125. For calculation purposes, use 5 decimal places as displayed in the
factor table provided.)
Net present value
Whether this project should be accepted?
The project should be accepted
1966
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