Six years ago, Neighborhood Hardware paid a contractor $67,000 to expand the store. At that time, the company calculated a net present value of about $8,200 for the expansion. Now, the company believes that the investment increased annual cash inflows by $10,200 per year for each of the six years. The company has a desired rate of return of 10%. Ignoring income tax considerations, what was the net present value actually achieved for this capital investment? (PV of $1 and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Do not round your intermediate calculations. Round your answer to the nearest dollar.

Six years ago, Neighborhood Hardware paid a contractor $67,000 to expand the store. At that time, the company calculated a net present value of about $8,200 for the expansion. Now, the company believes that the investment increased annual cash inflows by $10,200 per year for each of the six years. The company has a desired rate of return of 10%. Ignoring income tax considerations, what was the net present value actually achieved for this capital investment? (PV of $1 and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Do not round your intermediate calculations. Round your answer to the nearest dollar.

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Description: Mani Don't upload any image please Six years ago, Neighborhood Hardware paid a contractor $67,000 to expand the store. At that time, the companycalculated a net present value of about $8,200 for the expansion. Now, the company believes that the inves

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 11P

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