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
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
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 4P
Related questions
Question
![...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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F336519c0-4efa-418c-be83-f84a913a2a79%2Fadd06464-4348-4f0f-95dd-b9002cffa65b%2F9jizt3f_processed.jpeg&w=3840&q=75)
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
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning