Your Company is considering a project that would require an initial investment of $720,000 and would have a useful life of 8 years. The annual cash receipts would be $178,000 and the annual cash expenses would be $49,000. The salvage value of the assets used in the project would be $45,000. The company uses a discount rate of 10%. Compute the net present value of the project. a $145,590 b $250,645 c ($10,770) d ($31,785) e ($15,770)
Your Company is considering a project that would require an initial investment of $720,000 and would have a useful life of 8 years. The annual cash receipts would be $178,000 and the annual cash expenses would be $49,000. The salvage value of the assets used in the project would be $45,000. The company uses a discount rate of 10%. Compute the net present value of the project. a $145,590 b $250,645 c ($10,770) d ($31,785) e ($15,770)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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(Ignore income taxes in this problem.) Your Company is considering a project that would require an initial investment of $720,000 and would have a useful life of 8 years. The annual cash receipts would be $178,000 and the annual cash expenses would be $49,000. The salvage value of the assets used in the project would be $45,000. The company uses a discount rate of 10%. Compute the
| a |
$145,590 |
|
| b |
$250,645 |
|
| c |
($10,770) |
|
| d |
($31,785) |
|
| e |
($15,770) |
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