The following data pertain to an investment proposal (Ignore income taxes.): Cost of the investment $ 35,000 Annual Income $ 12,000 Estimated salvage value $ 6,000 Life of the project 4 years Discount rate 10% The net present value of the proposed investment is closest to: Round to nearest dolla
The following data pertain to an investment proposal (Ignore income taxes.): Cost of the investment $ 35,000 Annual Income $ 12,000 Estimated salvage value $ 6,000 Life of the project 4 years Discount rate 10% The net present value of the proposed investment is closest to: Round to nearest dolla
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following data pertain to an investment proposal (Ignore income taxes.):
Cost of the investment | $ 35,000 | |
---|---|---|
Annual Income | $ 12,000 | |
Estimated salvage value | $ 6,000 | |
Life of the project | 4 | years |
Discount rate | 10% |
The
Round to nearest dolla
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