Zebron Company is considering the following investment:
$\begin{array}{ll}
\text { Initial capital investment } & \$ 200,000 \
\text { Estimated useful life } & 3 \text { years } \
\text { Estimated disposal value in } 3 \text { years } & \$ 1,000 \
\text { Estimated annual savings in cash operating costs(end of year) } & \$ 100,000 \
\text { Minimum desired rate of return } & 10 \% \
\text { Present value of ordinary annuity of one, } 3 \text { periods at } 10 \% & 2.4869 \
\text { Present value of one, } 3 \text { periods at } 10 \% & 0.7513
\end{array}$
Assume straight-line depreciation is used.Ignore income taxes.The net present value of the investment is ________.

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The Answer of Zebron Company is considering the following investment:
$\begin{array}{ll}
\text { Initial capital investment } & \$ 200,000 \
\text { Estimated useful life } & 3 \text { years } \
\text { Estimated disposal value in } 3 \text { years } & \$ 1,000 \
\text { Estimated annual savings in cash operating costs(end of year) } & \$ 100,000 \
\text { Minimum desired rate of return } & 10 \% \
\text { Present value of ordinary annuity of one, } 3 \text { periods at } 10 \% & 2.4869 \
\text { Present value of one, } 3 \text { periods at } 10 \% & 0.7513
\end{array}$
Assume straight-line depreciation is used.Ignore income taxes.The net present value of the investment is ________.

Zebron Company Is Considering the Following Investment Assume Straight-Line Depreciation Is Used