Compute the net present value of the project. (Negative amount should be indicat
ID: 2430660 • Letter: C
Question
Compute the net present value of the project. (Negative amount should be indicated by a minus sign. Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount.)
Net present value=
Information needed:
PV of $1 - http://lectures.mhhe.com/connect/0078025419/Exhibit/Exhibit%2011B-1.JPG
PVA of $1 - http://lectures.mhhe.com/connect/0078025419/Exhibit/Exhibit%2011B-2.JPG
** please use numbers exactly from the tables.
Juliar Inc. has provided the following data concerning a proposed investment project: (Ignore income taxes.)Explanation / Answer
Net present value = PV of cash inflows + PV of salvage value - Initial Outlay
NPV = ($54,000 x 7.139) + ($44,000 x 0.429) - $370,000
NPV = $385,506 + $18,876 - $370,000 = $34,382
PVIFA of (8%, 11) is 7.139
PVIF of (8%, 11) = 0.429
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