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)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 8E

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