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Vaughn company has the following information about a potential capital investmen

ID: 2532846 • Letter: V

Question

Vaughn company has the following information about a potential capital investment. Calculate the net present value of this project.

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o.mheduca Most Visited my.utrgv.edu ALGEBRA Login CH 11 Qutz Question 6 (of 10) Save & Exit Submit Time remalning: 040:27 6. Vaughn Company has the following information about a potential captal investment: Initial investment Annual cash inflow Expected life Cost of capital S 340,000 S 80,000 7 years 13% 1. Calculate the net present value of this project. (Future Value of $1. Present Value of $1, Future Value Annuity of $1. Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Round the final answer to nearest whole dollar.) Net Present Value Macro II Sc2 1080 30 29... Chapter 10 test bank o.... Microsoft Study Notes Word -..

Explanation / Answer

Net present value n= 7 years I = 13% Annual cash inflow 80000 Present value annuity table I = 13% , n = 7 years 4.42261 Total cash inflow 353809 Net investment -340000 Net present value 13809