M11-6 (Algo) Calculating Net Present Value [LO 11-3] Citrus Company is considering a project with estimated annual net cash flows of $23,430 for four years that is estimated to cost $110,000. Citrus's cost of capital is 6 percent. Required: 1. Determine the net present value of the project. (Future Value of $1, Present Value of $1, Future Value Annuity of $1. Present Value Annuity of $1.) 2. Based on NPV, determine whether project is acceptable to Citrus. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the net present value of the project. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign. Round your final answer to 2 decimal places. Net Present Value < Required 1 Required 2 > Show less

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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M11-6 (Algo) Calculating Net Present Value [LO 11-3]
Citrus Company is considering a project with estimated annual net cash flows of $23,430 for four years that is estimated to cost
$110,000. Citrus's cost of capital is 6 percent.
Required:
1. Determine the net present value of the project. (Future Value of $1, Present Value of $1, Future Value Annuity of $1. Present Value
Annuity of $1.)
2. Based on NPV, determine whether project is acceptable to Citrus.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Determine the net present value of the project. (Future Value of $1, Present Value of $1, Future Value Annuity of $1,
Present Value Annuity of $1.)
Note: Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign. Round your
final answer to 2 decimal places.
Net Present Value
< Required 1
Required 2 >
Show less
Transcribed Image Text:M11-6 (Algo) Calculating Net Present Value [LO 11-3] Citrus Company is considering a project with estimated annual net cash flows of $23,430 for four years that is estimated to cost $110,000. Citrus's cost of capital is 6 percent. Required: 1. Determine the net present value of the project. (Future Value of $1, Present Value of $1, Future Value Annuity of $1. Present Value Annuity of $1.) 2. Based on NPV, determine whether project is acceptable to Citrus. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the net present value of the project. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign. Round your final answer to 2 decimal places. Net Present Value < Required 1 Required 2 > Show less
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