A $550,000 capital investment proposal has an estimated life of 4 years and no residual value.The estimated net cash flows are as follows:

The minimum desired rate of return for net present value analysis is 12%.The present value of $1 at compound interest of 12% for 1,2,3,and 4 years is 0.893,0.797,0.712,and 0.636,respectively.

Determine the net present value.

Question

A $550,000 capital investment proposal has an estimated life of 4 years and no residual value.The estimated net cash flows are as follows:
​
  The minimum desired rate of return for net present value analysis is 12%.The present value of $1 at compound interest of 12% for 1,2,3,and 4 years is 0.893,0.797,0.712,and 0.636,respectively.
​
Determine the net present value.

Quizplus · Accepted Answer

The Answer of A $550,000 capital investment proposal has an estimated life of 4 years and no residual value.The estimated net cash flows are as follows:
​
  The minimum desired rate of return for net present value analysis is 12%.The present value of $1 at compound interest of 12% for 1,2,3,and 4 years is 0.893,0.797,0.712,and 0.636,respectively.
​
Determine the net present value.

A $550,000 Capital Investment Proposal Has an Estimated Life of 4