! Required information [The following information applies to the questions displayed below.) Park Co. is considering an investment that requires immediate payment of $30,455 and provides expected cash inflows of $9,400 annually for four years. Assume Park Co. requires a 7% return on its investments. 1-a. What is the net present value of this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) 1-b. Based on NPV alone, should Park Co. invest? Complete this question by entering your answers in the tabs below. Required 1A Required 1B What is the net present value of this investment? Present Value = $ 0 Cash Flow Select Chart Amount X PV Factor = Annual cash flow Present Value of an Annuity of 1 x Immediate cash outflows Net present value < Required 1A Required 1B >
! Required information [The following information applies to the questions displayed below.) Park Co. is considering an investment that requires immediate payment of $30,455 and provides expected cash inflows of $9,400 annually for four years. Assume Park Co. requires a 7% return on its investments. 1-a. What is the net present value of this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) 1-b. Based on NPV alone, should Park Co. invest? Complete this question by entering your answers in the tabs below. Required 1A Required 1B What is the net present value of this investment? Present Value = $ 0 Cash Flow Select Chart Amount X PV Factor = Annual cash flow Present Value of an Annuity of 1 x Immediate cash outflows Net present value < Required 1A Required 1B >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.)
Park Co. is considering an investment that requires immediate payment of $30,455 and provides expected cash inflows of
$9,400 annually for four years. Assume Park Co. requires a 7% return on its investments.
1-a. What is the net present value of this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the
tables provided. Round your present value factor to 4 decimals.)
1-b. Based on NPV alone, should Park Co. invest?
Complete this question by entering your answers in the tabs below.
Required 1A Required 1B
What is the net present value of this investment?
Present Value
=
$
0
Cash Flow
Select Chart
Amount
X
PV Factor
=
Annual cash flow
Present Value of an Annuity of 1
x
Immediate cash outflows
Net present value
< Required 1A
Required 1B >
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