Randolph Corporation is considering an investment opportunity with the expected net cash inflows of $300,000 for four years.The residual value of the investment,at the end of four years,would be $70,000.The company uses a discount rate of 14%,and the initial investment is $290,000.Calculate the NPV of the investment.
Present value of an ordinary annuity of $1:

Present value of $1:

Question

Randolph Corporation is considering an investment opportunity with the expected net cash inflows of $300,000 for four years.The residual value of the investment,at the end of four years,would be $70,000.The company uses a discount rate of 14%,and the initial investment is $290,000.Calculate the NPV of the investment.
Present value of an ordinary annuity of $1:
  
Present value of $1:

Quizplus · Accepted Answer

The Answer of Randolph Corporation is considering an investment opportunity with the expected net cash inflows of $300,000 for four years.The residual value of the investment,at the end of four years,would be $70,000.The company uses a discount rate of 14%,and the initial investment is $290,000.Calculate the NPV of the investment.
Present value of an ordinary annuity of $1:
  
Present value of $1:

Randolph Corporation Is Considering an Investment Opportunity with the Expected