Kansas Mining is evaluating a proposal to invest in a new piece of equipment costing $50,000 with the following annual cash flows over the equipment's 4-year useful life:
$$\begin{array} { lr }
\text { Cash revenues } & \$ 60,000 \
\text { Cash expenses } & (34,000) \
\text { Depreciation expenses (straight-line) } & \underline{(10,000)} \
\text { Income provided from equipment } & \underline{\$ 16,000} \
\text { Cost of capital } & 12 \text { percent }
\end{array}$$ Using a spreadsheet or financial calculator, determine the net present value for the investment.
The investment's net present value is:

Question

Kansas Mining is evaluating a proposal to invest in a new piece of equipment costing $50,000 with the following annual cash flows over the equipment's 4-year useful life:
$$\begin{array} { lr } 
\text { Cash revenues } & \$ 60,000 \
\text { Cash expenses } & (34,000) \
\text { Depreciation expenses (straight-line) } & \underline{(10,000)} \
\text { Income provided from equipment } & \underline{\$ 16,000} \
\text { Cost of capital } & 12 \text { percent }
\end{array}$$ Using a spreadsheet or financial calculator, determine the net present value for the investment.
The investment's net present value is:

Quizplus · Accepted Answer

The Answer of Kansas Mining is evaluating a proposal to invest in a new piece of equipment costing $50,000 with the following annual cash flows over the equipment's 4-year useful life:
$$\begin{array} { lr } 
\text { Cash revenues } & \$ 60,000 \
\text { Cash expenses } & (34,000) \
\text { Depreciation expenses (straight-line) } & \underline{(10,000)} \
\text { Income provided from equipment } & \underline{\$ 16,000} \
\text { Cost of capital } & 12 \text { percent }
\end{array}$$ Using a spreadsheet or financial calculator, determine the net present value for the investment.
The investment's net present value is:

Kansas Mining Is Evaluating a Proposal to Invest in a New