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 >

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 >

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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