Your answer is partially correct. Crane Company is considering a long-term investment project called ZIP ZIP will require an investment of $125,600. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,500, and annual cash outflows would increase by $42,000. 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 negatike sign preceding the number eg-45 or parentheses eg (45). Round present value answer to O decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value 3.26
Your answer is partially correct. Crane Company is considering a long-term investment project called ZIP ZIP will require an investment of $125,600. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,500, and annual cash outflows would increase by $42,000. 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 negatike sign preceding the number eg-45 or parentheses eg (45). Round present value answer to O decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value 3.26
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Your answer is partially correct.
Crane Company is considering a long-term investment project called ZIP. ZIP will require an investment of $125,600. It will have a
useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,500, and annual cash outflows would increase by
$42,000. 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 negatike 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 accepted v
3.26
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