how do I show work for this question including: requirement 1 2 3 ignore the ans
ID: 2531118 • Letter: H
Question
how do I show work for this question including:
requirement 1 2 3
ignore the answers for requirement 3, just an outline for possible answers
Magno-pro is considering buying a new water treatment system for ts plant in Austin, Texas. The investment proposal passed the initial screening tests (payback and accounting rate of returm) so the company now wan $52.800, has a eight-year life. and has no residual valus. The estimated net cash inficws from environmental cleanup savings are $11,000 per year over its life. The nts to analyze the proposal using the discounted cash flow methods. The water treatment system costs company's required rate of return is 16%. Click the icon to view Present Value of $1 table.) Click the icon to view Present Value of Ordinary Annuity of $1 table.) table.)Explanation / Answer
Requirement 1
Year
Net Cash Flow
Annuity present value factor
Present Value
1-8
Present value of Annuity
$11,000
4.75336
$52,287
(Rounded)
0
Investment
$52,800
1.0000
$52,800
Net Present Value
- $517
(Negative)
Year
Net Cash Flow
Annuity present value factor
Present Value
1-8
Present value of Annuity
$11,000
4.75336
$52,287
(Rounded)
0
Investment
$52,800
1.0000
$52,800
Net Present Value
- $517
(Negative)
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