Quail Company is considering buying a food truck that will yield net cash inflows of $13,600 per year for seven years. The truck costs: $43,000 and has an estimated $6,600 salvage value at the end of the seventh year. (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Us- appropriate factor(s) from the tables provided. Enter negative net present values, if any, as negative values. Round your present value factor to 4 decimals.) What is the net present value of this investment assuming a required 8% return? Years 1-7 Totals Net present value Net Cash Flows x PV Factor 11 11 "1 11 Present Value of Net Cash Flows

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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Author:MOYER
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Chapter10: Capital Budgeting: Decision Criteria And Real Option
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Quail Company is considering buying a food truck that will yield net cash inflows of $13,600 per year for seven years. The truck costs
$43,000 and has an estimated $6,600 salvage value at the end of the seventh year. (PV of $1, FV of $1. PVA of $1, and FVA of $1) (Use
appropriate factor(s) from the tables provided. Enter negative net present values, if any, as negative values. Round your present
value factor to 4 decimals.)
What is the net present value of this investment assuming a required 8% return?
!
1
Years 1-7
Totals
Net present value
A
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Net Cash Flows x PV Factor
APR
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Present Value of
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Transcribed Image Text:...txt Quail Company is considering buying a food truck that will yield net cash inflows of $13,600 per year for seven years. The truck costs $43,000 and has an estimated $6,600 salvage value at the end of the seventh year. (PV of $1, FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Enter negative net present values, if any, as negative values. Round your present value factor to 4 decimals.) What is the net present value of this investment assuming a required 8% return? ! 1 Years 1-7 Totals Net present value A Q D F1 @ 2 W F2 # 3 E 80 F3 Net Cash Flows x PV Factor APR 11 $ 4 R a F4 % 5 < Prev 0 F5 T A 6 = = = = Present Value of Net Cash Flows 5 of 8 tv C F6 Y & 7 + ← F7 Next > * 8 1 l DII F8 U I ( 9 F9 A ) 0 0 S F10 A S D F G H J K L P
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