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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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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