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 Flows $ $ 8,800 10,800 12,800 32,400 Present Value of 1 at 13% 0.8850 0.7831 0.6931 Present Value of Net Cash Flows Required A (27,000) Required B >

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Chapter1: Making Economics Decisions
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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
F2
Net Cash
Flows
$
$
8,800
10,800
12,800
32,400
Present Value
of 1 at 13%
0.8850
0.7831
0.6931
APR
11
80
< Required A
$
O
Q
Present Value of
Net Cash Flows
F4
5
%
(27,000)
Saved
< Prev
m
F5
Required B >
4 of 8 #
tv
F6
Next >
Analis
F7
DII
FB
ZA
D
19
Transcribed Image Text:D.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Felearning.kctcs.edu%252F News Translate M SmartBook 2.0 M SmartBook 2.0 Maps mework i 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 F2 Net Cash Flows $ $ 8,800 10,800 12,800 32,400 Present Value of 1 at 13% 0.8850 0.7831 0.6931 APR 11 80 < Required A $ O Q Present Value of Net Cash Flows F4 5 % (27,000) Saved < Prev m F5 Required B > 4 of 8 # tv F6 Next > Analis F7 DII FB ZA D 19
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