Solved

The Orbison Company Has Analyzed an Investment Opportunity Costing $250,000

Question 53

Multiple Choice

The Orbison Company has analyzed an investment opportunity costing $250,000 and determinedthat the net present value is -$5,040. Petty's management estimated that the investment wouldhave equal annual net cash flows for four years, a salvage value of $20,000 after four years, and used adiscount rate of 14%. What was the annual net cash flow associated with the investment opportunity?Note: Present value tables are needed.


A) $56,240
B) $87,520
C) $83,120
D) $80,000

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents