ullumber Company is considering a long-term investment project called ZIP ZIP will require an investment of $128,300. It will F seful life of 4 years and no salvage value. Annual cash inflows would increase by $80,300, and annual cash outflows would increa 40,300. The company's required rate of return is 9%. Click here to view the factor table. alculate the net present value on this project. (If the net present value is negative, use either a negative sign preceding the
ullumber Company is considering a long-term investment project called ZIP ZIP will require an investment of $128,300. It will F seful life of 4 years and no salvage value. Annual cash inflows would increase by $80,300, and annual cash outflows would increa 40,300. The company's required rate of return is 9%. Click here to view the factor table. alculate the net present value on this project. (If the net present value is negative, use either a negative sign preceding the
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 28P: Friedman Company is considering installing a new IT system. The cost of the new system is estimated...
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![Cullumber Company is considering a long-term investment project called ZIP. ZIP will require an investment of $128,300. It will have a
useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,300, and annual cash outflows would increase by
$40,300. The company's required rate of return is 9%. Click here to view the factor 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 0 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%2F6b56792a-d336-4c40-b8c3-1072ca5ed4f4%2Fc3deb838-d50a-4ec3-bfc7-361112f20825%2Frnvllv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Cullumber Company is considering a long-term investment project called ZIP. ZIP will require an investment of $128,300. It will have a
useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,300, and annual cash outflows would increase by
$40,300. The company's required rate of return is 9%. Click here to view the factor 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 0 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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