Vaughn Company has the following information about a potential capital investment: Initial investment Annual cash inflow Expected life Cost of capital Required: $ 380,000 $ 89,000 6 years 9% 1. Calculate the net present value of this project. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided. Round the final answer to nearest whole dollar. Net Present Value

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A1

Vaughn Company has the following information about a potential capital investment:
Initial investment
Annual cash inflow
Expected life
Cost of capital
Required:
$ 380,000
$ 89,000
6 years
9%
1. Calculate the net present value of this project. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value
Annuity of $1.)
Note: Use appropriate factor(s) from the tables provided. Round the final answer to nearest whole dollar.
Net Present Value
Transcribed Image Text:Vaughn Company has the following information about a potential capital investment: Initial investment Annual cash inflow Expected life Cost of capital Required: $ 380,000 $ 89,000 6 years 9% 1. Calculate the net present value of this project. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided. Round the final answer to nearest whole dollar. Net Present Value
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