Walen Co. has intends to purchase a new forklift for $88,000.00 cash. It expects annual net operating cash flows of $13,700 per year for 8 years, and a salvage value at the end of 8 years of $9,200. Walen uses a 6% discount rate. What is the net present value of the investment? (For calculation purposes, use five decimal places as displayed in the factor table provided. Round your answer to two decimal places (e.g., 52.75).) Click here to view the factor table.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Walen Co. has intends to purchase a new forklift for $88,000.00 cash. It expects annual net operating cash flows of $13,700 per
year for 8 years, and a salvage value at the end of 8 years of $9,200. Walen uses a 6% discount rate. What is the net present value
of the investment? (For calculation purposes, use five decimal places as displayed in the factor table provided. Round your answer to two
decimal places (e.g., 52.75).)
Click here to view the factor table.
Transcribed Image Text:Walen Co. has intends to purchase a new forklift for $88,000.00 cash. It expects annual net operating cash flows of $13,700 per year for 8 years, and a salvage value at the end of 8 years of $9,200. Walen uses a 6% discount rate. What is the net present value of the investment? (For calculation purposes, use five decimal places as displayed in the factor table provided. Round your answer to two decimal places (e.g., 52.75).) Click here to view the factor table.
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