Mini Inc. is contemplating a capital project costing $47,019. The project will provide annual cost savings of $18,501 for 3 years and have a salvage value of $3,000. The company's required rate of return is 10%. The company uses straight-line depreciation. Present Value of an Annuity of 1 Period Present Value of 1 at 10% Present Value of an Annuity of 1 at 10% 1 .909 .909 .826 1.736 3 .751 2.487 Calculate the Net Present Value. Round your answer to 2 decimal places.
Mini Inc. is contemplating a capital project costing $47,019. The project will provide annual cost savings of $18,501 for 3 years and have a salvage value of $3,000. The company's required rate of return is 10%. The company uses straight-line depreciation. Present Value of an Annuity of 1 Period Present Value of 1 at 10% Present Value of an Annuity of 1 at 10% 1 .909 .909 .826 1.736 3 .751 2.487 Calculate the Net Present Value. Round your answer to 2 decimal places.
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section10.A: Mutually Exclusive Investments Having Unequal Lives
Problem 2P
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![Mini Inc. is contemplating a capital project costing $47,019. The project will provide annual cost
savings of $18,501 for 3 years and have a salvage value of $3,000. The company's required rate of
return is 10%. The company uses straight-line depreciation.
Present Value of an Annuity of 1
Period
Present Value of 1 at 10%
Present Value of an Annuity of 1 at 10%
1
.909
.909
.826
1.736
3
.751
2.487
Calculate the Net Present Value. Round your answer to 2 decimal places.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb155383f-1482-4158-bfc0-94ad91579101%2F84b50a78-66c1-4e79-88af-b01691ffaaf7%2Fkxchuy5_processed.png&w=3840&q=75)
Transcribed Image Text:Mini Inc. is contemplating a capital project costing $47,019. The project will provide annual cost
savings of $18,501 for 3 years and have a salvage value of $3,000. The company's required rate of
return is 10%. The company uses straight-line depreciation.
Present Value of an Annuity of 1
Period
Present Value of 1 at 10%
Present Value of an Annuity of 1 at 10%
1
.909
.909
.826
1.736
3
.751
2.487
Calculate the Net Present Value. Round your answer to 2 decimal places.
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