(lgnore income taxes in this problem.) Your Company's cost of capital is 9%, The project being consided has an eight year life. What is the net present value of project? Cost of equipment $105,000 $ 65,000 $ 25,000 Working capital needed Annual cost savings O ($31,625) O $9,130 O $1,005 O $3,947 O (56,535)

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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((Ignore income taxes in this problem.) Your Company's cost of capital is 9%, The project being consided has an eight year life. What is the net present value of project?
Cost of equipment
$105,000
Working capital needed
$ 65,000
Annual cost savings
$ 25,000
($31,625)
$9,130
O $1,005
O $3,947
O ($6,535)
O O O O
Transcribed Image Text:((Ignore income taxes in this problem.) Your Company's cost of capital is 9%, The project being consided has an eight year life. What is the net present value of project? Cost of equipment $105,000 Working capital needed $ 65,000 Annual cost savings $ 25,000 ($31,625) $9,130 O $1,005 O $3,947 O ($6,535) O O O O
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