Hi-Town Nursery is considering the purchase of a new greenhouse.The greenhouse will have an initial cost of $20 000 and an estimated salvage value of $3000 at the end of its useful life.The nursery expects annual net operating cash inflows to increase $5000 each year for 10 years.The cost of capital is 12 per cent.
Required: Compute the net present value of the new greenhouse.(Ignore income taxes)

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The Answer of Hi-Town Nursery is considering the purchase of a new greenhouse.The greenhouse will have an initial cost of $20 000 and an estimated salvage value of $3000 at the end of its useful life.The nursery expects annual net operating cash inflows to increase $5000 each year for 10 years.The cost of capital is 12 per cent.
Required: Compute the net present value of the new greenhouse.(Ignore income taxes)

Hi-Town Nursery Is Considering the Purchase of a New Greenhouse