Sunrise Inc.is considering a capital investment proposal that costs $227,500 and has an estimated life of 4 years and no residual value.The estimated net cash flows are as follows:

The minimum desired rate of return for net present value analysis is 10%.The present value of $1 at compound interest rates of 10% for 1,2,3,and 4 years is 0.909,0.826,0.751,and 0.683,respectively.Determine the net present value.Round interim answers to the nearest dollar.

Question

Sunrise Inc.is considering a capital investment proposal that costs $227,500 and has an estimated life of 4 years and no residual value.The estimated net cash flows are as follows:
​
  The minimum desired rate of return for net present value analysis is 10%.The present value of $1 at compound interest rates of 10% for 1,2,3,and 4 years is 0.909,0.826,0.751,and 0.683,respectively.Determine the net present value.Round interim answers to the nearest dollar.

Quizplus · Accepted Answer

The Answer of Sunrise Inc.is considering a capital investment proposal that costs $227,500 and has an estimated life of 4 years and no residual value.The estimated net cash flows are as follows:
​
  The minimum desired rate of return for net present value analysis is 10%.The present value of $1 at compound interest rates of 10% for 1,2,3,and 4 years is 0.909,0.826,0.751,and 0.683,respectively.Determine the net present value.Round interim answers to the nearest dollar.