Six years ago, Neighborhood Hardware paid a contractor $45,000 to expand the store. At that time, the company calculated a net present value of about $6,000 for the expansion. Now, the company believes that the investment increased annual cash inflows by $8,000 per year for each of the six years. The company has a desired rate of return of 10%. What was the net present value actually achieved for this capital investment? (Do not round your PV factors and intermediate calculations. Round to the nearest dollar.)

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The Answer of Six years ago, Neighborhood Hardware paid a contractor $45,000 to expand the store. At that time, the company calculated a net present value of about $6,000 for the expansion. Now, the company believes that the investment increased annual cash inflows by $8,000 per year for each of the six years. The company has a desired rate of return of 10%. What was the net present value actually achieved for this capital investment? (Do not round your PV factors and intermediate calculations. Round to the nearest dollar.)

Six Years Ago, Neighborhood Hardware Paid a Contractor $45,000 to Expand