The Petty Company has analyzed an investment opportunity costing $270,000 and determinedthat the net present value is $1,420. Petty's management estimated that the investment wouldgenerate cash inflows of $50,000 a year for eight years and used a discount rate of 10%. What was thesalvage value associated with the investment opportunity? Note: Present value tables are needed.

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The Answer of The Petty Company has analyzed an investment opportunity costing $270,000 and determinedthat the net present value is $1,420. Petty's management estimated that the investment wouldgenerate cash inflows of $50,000 a year for eight years and used a discount rate of 10%. What was thesalvage value associated with the investment opportunity? Note: Present value tables are needed.

The Petty Company Has Analyzed an Investment Opportunity Costing $270,000