The Marvellous Resort accountant has developed the following estimates relating to a proposed investment in its laundry department.
$$\begin{array} { l r }
\text { Cost of new laundry equipment } & \$ 38,000 \
\text { Annual cash savings from new equipment } & \$ 8,000 \
\text { Life of the new equipment } & 7 \text { years } \
\text { Equipment salvage value } & \$ 5,000 \
\text { Marvellous Resort cost of capital } & 8 \%
\end{array}$$ What is the net present value of the proposed investment?

Question

The Marvellous Resort accountant has developed the following estimates relating to a proposed investment in its laundry department.
$$\begin{array} { l r } 
\text { Cost of new laundry equipment } & \$ 38,000 \
\text { Annual cash savings from new equipment } & \$ 8,000 \
\text { Life of the new equipment } & 7 \text { years } \
\text { Equipment salvage value } & \$ 5,000 \
\text { Marvellous Resort cost of capital } & 8 \%
\end{array}$$ What is the net present value of the proposed investment?

Quizplus · Accepted Answer

The Answer of The Marvellous Resort accountant has developed the following estimates relating to a proposed investment in its laundry department.
$$\begin{array} { l r } 
\text { Cost of new laundry equipment } & \$ 38,000 \
\text { Annual cash savings from new equipment } & \$ 8,000 \
\text { Life of the new equipment } & 7 \text { years } \
\text { Equipment salvage value } & \$ 5,000 \
\text { Marvellous Resort cost of capital } & 8 \%
\end{array}$$ What is the net present value of the proposed investment?

The Marvellous Resort Accountant Has Developed the Following Estimates Relating