Hsung Company accumulates the following data concerning a proposed capital investment: cash cost $221,775, net annual cash flows $41,500, and present value factor of cash inflows for 10 years is 5.65 (rounded). (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45).) Determine the net present value, and indicate whether the investment should be made. Net present value 2$ The investment should be made.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Hsung Company accumulates the following data concerning a proposed capital investment: cash cost $21,775, net annual
cash flows $41,500, and present value factor of cash inflows for 10 years is 5.65 (rounded). (If the net present value is
negative, use either a negative sign preceding the number eg -45 or parentheses eg (45).)
Determine the net present value, and indicate whether the investment should be made.
Net present value
$
The investment
should
v be made.
Transcribed Image Text:Hsung Company accumulates the following data concerning a proposed capital investment: cash cost $21,775, net annual cash flows $41,500, and present value factor of cash inflows for 10 years is 5.65 (rounded). (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45).) Determine the net present value, and indicate whether the investment should be made. Net present value $ The investment should v be made.
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