Matlock Corp. is considering investing in new excavation equipment for their mining business. The investment will require an outlay of $2,000,000 initially, and is expected to generate the following after-tax cash flows:
The company uses a discount rate of 15%.
What is the Net Present Value of the proposed investment? (Use a financial calculator to answer this question.)

Question

Matlock Corp. is considering investing in new excavation equipment for their mining business. The investment will require an outlay of $2,000,000 initially, and is expected to generate the following after-tax cash flows: 
  The company uses a discount rate of 15%.
What is the Net Present Value of the proposed investment? (Use a financial calculator to answer this question.)

Quizplus · Accepted Answer

The Answer of Matlock Corp. is considering investing in new excavation equipment for their mining business. The investment will require an outlay of $2,000,000 initially, and is expected to generate the following after-tax cash flows: 
  The company uses a discount rate of 15%.
What is the Net Present Value of the proposed investment? (Use a financial calculator to answer this question.)