Vaughn Company has the following information about a potential capital investment: V $ 420,000 $ Initial investment Annual cash inflow 87,000 9 years 14% Expected life Cost of capital V tl 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.) (Use appropriate factor(s) from the tables provided. Round the final answer to nearest whole dollar.) Net Present Value

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Vaughn Company has the following information about a potential capital investment:
V
$ 420,000
$
Initial investment
Annual cash inflow
87,000
9 years
14%
Expected life
Cost of capital
V
tl
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.) (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: V $ 420,000 $ Initial investment Annual cash inflow 87,000 9 years 14% Expected life Cost of capital V tl 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.) (Use appropriate factor(s) from the tables provided. Round the final answer to nearest whole dollar.) Net Present Value
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