Firefox Company is considering the following investment proposal:
$$\begin{array}{lr}
\text{Initial investment:} \
\text{~~~~Depreciable assets (straight-line)} & \$36,000 \
\text{~~~~Working capital} & 4,000 \
\text{Operations (per year for 4 years):} \
\text{~~~~Cash receipts} & \$25,000 \
\text{~~~~Cash expenditures} & 11,000 \
\text{Disirvestment:} \
\text{~~~~Salvage value of equipment} & \$3,000 \
\text{~~~~Recovery of working capital} & 4,000 \
\text{Discount rate:} & 10 \text{ percent} \
\end{array}$$ Using a spreadsheet or financial calculator, determine the net present value for the investment.
The investment's net present value is:

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The Answer of Firefox Company is considering the following investment proposal:
$$\begin{array}{lr}
\text{Initial investment:} \
\text{~~~~Depreciable assets (straight-line)} & \$36,000 \
\text{~~~~Working capital} & 4,000 \
\text{Operations (per year for 4 years):} \
\text{~~~~Cash receipts} & \$25,000 \
\text{~~~~Cash expenditures} & 11,000 \
\text{Disirvestment:} \
\text{~~~~Salvage value of equipment} & \$3,000 \
\text{~~~~Recovery of working capital} & 4,000 \
\text{Discount rate:} & 10 \text{ percent} \
\end{array}$$ Using a spreadsheet or financial calculator, determine the net present value for the investment.
The investment's net present value is:

Firefox Company Is Considering the Following Investment Proposal Using a Spreadsheet or Financial Calculator, Determine the Net Present