Rebecca (Ellie's friend) also left her job as a teacher to start her own consulting firm. She can make an investment on equipment that will immediately cost $52,000. If she makes the investment, her after-tax operating profit will be $13,000 per year for five years. After five years, her after-tax operating profit will be zero, and the scrap value for her investment on equipment will be zero. She plans on financing this investment with internally generated funds and receive the profit at the end of each year. (Question 1 of 1) What is the net present value of her investment if the discount rate is 6 percent? (report your answer in dollars up to 2 decimal places)
Rebecca (Ellie's friend) also left her job as a teacher to start her own consulting firm. She can make an investment on equipment that will immediately cost $52,000. If she makes the investment, her after-tax operating profit will be $13,000 per year for five years. After five years, her after-tax operating profit will be zero, and the scrap value for her investment on equipment will be zero. She plans on financing this investment with internally generated funds and receive the profit at the end of each year. (Question 1 of 1) What is the net present value of her investment if the discount rate is 6 percent? (report your answer in dollars up to 2 decimal places)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Rebecca (Ellie's friend) also left her job as a teacher to start her own consulting firm. She can make an investment on equipment that will immediately cost $52,000. If she makes the investment, her after-tax operating
profit will be $13,000 per year for five years. After five years, her after-tax operating profit will be zero, and the scrap value for her investment on equipment will be zero. She plans on financing this investment with internally
generated funds and receive the profit at the end of each year.
(Question 1 of 1)
What is the net present value of her investment if the discount rate is 6 percent? (report your answer in dollars up to 2 decimal places)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb23fedb5-c85c-4cb2-b90f-77c8d6af08db%2F24df114a-aae6-4baf-8b66-f7f4c7c430c2%2Fdk6076j_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Rebecca (Ellie's friend) also left her job as a teacher to start her own consulting firm. She can make an investment on equipment that will immediately cost $52,000. If she makes the investment, her after-tax operating
profit will be $13,000 per year for five years. After five years, her after-tax operating profit will be zero, and the scrap value for her investment on equipment will be zero. She plans on financing this investment with internally
generated funds and receive the profit at the end of each year.
(Question 1 of 1)
What is the net present value of her investment if the discount rate is 6 percent? (report your answer in dollars up to 2 decimal places)
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