Wildhorse Company is considering a long-term investment project called ZIP. ZIP will require an investment of $128,700. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $79,400, and annual cash outflows would increase by $40,200. The company's required rate of return is 8%. 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
Wildhorse Company is considering a long-term investment project called ZIP. ZIP will require an investment of $128,700. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $79,400, and annual cash outflows would increase by $40,200. The company's required rate of return is 8%. 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Wildhorse Company is considering a long-term investment project called ZIP. ZIP will require an investment of $128,700. It will have a
useful life of 4 years and no salvage value. Annual cash inflows would increase by $79,400, and annual cash outflows would increase by
$40,200. The company's required rate of return is 8%. 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
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