Lawton Co. is evaluating a project that requires an investment of $400,000. The company plans to dispose of the property at the end of the fourth year for $121,620. Information about cash flows associated with the project is as follows: All cash flows occur at the end of the year. The required rate of return is 12% and the tax rate is 40%. The CCA rate is 30%.
Determine the net present value of the project. (Round amounts to dollars.)

Question

Lawton Co. is evaluating a project that requires an investment of $400,000. The company plans to dispose of the property at the end of the fourth year for $121,620. Information about cash flows associated with the project is as follows:  All cash flows occur at the end of the year. The required rate of return is 12% and the tax rate is 40%. The CCA rate is 30%.
Determine the net present value of the project. (Round amounts to dollars.)

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The Answer of Lawton Co. is evaluating a project that requires an investment of $400,000. The company plans to dispose of the property at the end of the fourth year for $121,620. Information about cash flows associated with the project is as follows:  All cash flows occur at the end of the year. The required rate of return is 12% and the tax rate is 40%. The CCA rate is 30%.
Determine the net present value of the project. (Round amounts to dollars.)

Lawton Co Is Evaluating a Project That Requires an Investment of of $400,000