Swifty Company is considering a long-term investment project called ZIP. ZIP will require an investment of $128,100. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $79,100, and annual cash outflows would increase by $38,100. The company's required rate of return is 10%. Click here to view PV table. Calculate the net present value on this project. (If the net present value is negative, use either a negative sign preceding the number eg-45 or parentheses eg (45). Round present value answer to O decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value
Swifty Company is considering a long-term investment project called ZIP. ZIP will require an investment of $128,100. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $79,100, and annual cash outflows would increase by $38,100. The company's required rate of return is 10%. Click here to view PV table. Calculate the net present value on this project. (If the net present value is negative, use either a negative sign preceding the number eg-45 or parentheses eg (45). Round present value answer to O decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 10E: Roberts Company is considering an investment in equipment that is capable of producing more...
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![Swifty Company is considering a long-term investment project called ZIP. ZIP will require an investment of $128,100. It will have a
useful life of 4 years and no salvage value. Annual cash inflows would increase by $79,100, and annual cash outflows would increase by
$38,100. The company's required rate of return is 10%. Click here to view PV table.
Calculate the net present value on this project. (If the net present value is negative, use either a negative sign preceding the number eg -45 or
parentheses eg (45). Round present value answer to O decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the
factor table provided.)
Net present value
Whether this project should be accepted?
The project should be](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2dbf05e8-4609-48ee-b8a3-5dc8c1c2617c%2F5612ecca-89d4-4007-84a6-1ec9813ac480%2Fg2i2rm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Swifty Company is considering a long-term investment project called ZIP. ZIP will require an investment of $128,100. It will have a
useful life of 4 years and no salvage value. Annual cash inflows would increase by $79,100, and annual cash outflows would increase by
$38,100. The company's required rate of return is 10%. Click here to view PV table.
Calculate the net present value on this project. (If the net present value is negative, use either a negative sign preceding the number eg -45 or
parentheses eg (45). Round present value answer to O decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the
factor table provided.)
Net present value
Whether this project should be accepted?
The project should be
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