The annual profit from an investment is $25,000 each year for 5 years and the cost of investment is $75,000 with a salvage value of $45,000. The discount rate (cost of capital) at this risk level is 14%. Based on the given information, the net present value of the investment = $☐ (round your response to the nearest whole number).
The annual profit from an investment is $25,000 each year for 5 years and the cost of investment is $75,000 with a salvage value of $45,000. The discount rate (cost of capital) at this risk level is 14%. Based on the given information, the net present value of the investment = $☐ (round your response to the nearest whole number).
College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter8: Sequences And Series
Section8.4: Mathematics Of Finance
Problem 2E
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