Smythe Company $$\begin{array}{l}
\text { Smythe Company is considering the following investment: }\
\begin{array} { l l }
\text { Investment } & \$ 140,000 \
\text { Annual revenues } & \$ 96,000 \
\text { Annual variable costs } & \$ 32,000 \
\text { Annual fixed out-of-pocket costs } & \$ 20,000 \
\text { Discount rate } & 12 \% \
\text { Expected life of project } & 8 \text { years }
\end{array}
\end{array}$$
-Refer to Smythe Company. What is the present value of the future cash flows?

Question

Smythe Company $$\begin{array}{l}
\text { Smythe Company is considering the following investment: }\
\begin{array} { l l } 
\text { Investment } & \$ 140,000 \
\text { Annual revenues } & \$ 96,000 \
\text { Annual variable costs } & \$ 32,000 \
\text { Annual fixed out-of-pocket costs } & \$ 20,000 \
\text { Discount rate } & 12 \% \
\text { Expected life of project } & 8 \text { years }
\end{array}
\end{array}$$
-Refer to Smythe Company. What is the present value of the future cash flows?

Quizplus · Accepted Answer

The Answer of Smythe Company $$\begin{array}{l}
\text { Smythe Company is considering the following investment: }\
\begin{array} { l l } 
\text { Investment } & \$ 140,000 \
\text { Annual revenues } & \$ 96,000 \
\text { Annual variable costs } & \$ 32,000 \
\text { Annual fixed out-of-pocket costs } & \$ 20,000 \
\text { Discount rate } & 12 \% \
\text { Expected life of project } & 8 \text { years }
\end{array}
\end{array}$$
-Refer to Smythe Company. What is the present value of the future cash flows?

Smythe Company -Refer to Smythe Company