Shields Company has gathered the following data on a proposed investment project

Question

Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.)

The net present value on this investment is closest to: (Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount.)

Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.)

Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.) The net present value on this investment is closest to: (Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount.) $690,000 $72,750 $76,000 $78,056

Explanation / Answer

Answer D: $78,056.00

Formula to Calculate : =-PV(6%,16,76000) - 690,000

=

Investment required in equipment ($690,000.00) PV of all Cash Flows $768,056.00 76000* PV of Annuity Factor 76000*10.106 NPV $78,056.00

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