Juliar Inc. has provided the following data concerning a proposed investment pro
ID: 2381153 • Letter: J
Question
Juliar Inc. has provided the following data concerning a proposed investment project: (Ignore income taxes.)
Click here to view Exhibit 13B-1 and Exhibit 13B-2 to determine the appropriate discount factor(s) using tables.
Compute the net present value of the project.
Please show work. Thank you!
Juliar Inc. has provided the following data concerning a proposed investment project: (Ignore income taxes.)
Juliar Inc. has provided the following data concerning a proposed investment project: (Ignore income taxes.)Explanation / Answer
net present value of the project = 53000*PVIFA(8%,11) + 43000*PVIF(8%,11) - 360000
net present value of the project.= 53000*7.139 + 43000* 0.429 - 360000
net present value of the project.=36814
Answer: Net present value of the project.=$ 36814
Initial investment $ 360,000 Life of the project
11 years Annual net cash inflows $ 53,000 Salvage value $ 43,000
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