Q1/ Ipswich Corporation is considering an investment opportunity with the expected net cash inflows of $300,000 for four years. The residual value of the investment, at the end of four years, would be $70,000. The company uses a discount rate of 14%, and the initial investment is $290,000. Calculate the NPV of the investment. Present value of an ordinary annuity of $1: 12% 13% | 14% | 15% 10.893 0.8850.877 0.87 2 1.69 1.668|1.647 1.626 32.402 2.361 2.3222.283 43.037 2.9742.914 2.855 3.605 3.517 3.4333.352 Present value of $1: 12% 13% 14% | 15% 0.893 0.885 0.877| 0.87 20.797 0.783|0.769|0.756 30.712 0.693|0.675 0.658 40.636 0.6130.592 0.572 50.567 0.543 0.519|0.497|

Q1/ Ipswich Corporation is considering an investment opportunity with the expected net cash inflows of $300,000 for four years. The residual value of the investment, at the end of four years, would be $70,000. The company uses a discount rate of 14%, and the initial investment is $290,000. Calculate the NPV of the investment. Present value of an ordinary annuity of $1: 12% 13% | 14% | 15% 10.893 0.8850.877 0.87 2 1.69 1.668|1.647 1.626 32.402 2.361 2.3222.283 43.037 2.9742.914 2.855 3.605 3.517 3.4333.352 Present value of $1: 12% 13% 14% | 15% 0.893 0.885 0.877| 0.87 20.797 0.783|0.769|0.756 30.712 0.693|0.675 0.658 40.636 0.6130.592 0.572 50.567 0.543 0.519|0.497|

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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f1. Subject :- Finance