Ignore income taxes in this problem.) Your Company is considering a project with a 6-year life. Your required rate of return is 14%. What is the net present value of the project? Project Cost of equipment needed now $50,000 Working capital investment needed now 65,000 Annual cash operating inflows 25,000 Salvage value of equipment in 6 years 0 Group of answer choices ( $7,755. $47,225 $13,350. $11,865
Ignore income taxes in this problem.) Your Company is considering a project with a 6-year life. Your required rate of return is 14%. What is the net present value of the project? Project Cost of equipment needed now $50,000 Working capital investment needed now 65,000 Annual cash operating inflows 25,000 Salvage value of equipment in 6 years 0 Group of answer choices ( $7,755. $47,225 $13,350. $11,865
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 3CMA
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Question
(Ignore income taxes in this problem.) Your Company is considering a project with a 6-year life. Your required
|
|
Project |
|
Cost of equipment needed now |
$50,000 |
|
|
65,000 |
|
Annual |
25,000 |
|
Salvage value of equipment in 6 years |
0 |
Group of answer choices
( $7,755.
$47,225
$13,350.
$11,865
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