Heedy Inc.is considering a capital investment proposal that costs $460,000 and has an estimated life of four 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 10%.The present value of $1 at compound interest rates of 10% for 1,2,3,and 4 years is .909,.826,.751,and .683,respectively.Determine the net present value.

Question

Heedy Inc.is considering a capital investment proposal that costs $460,000 and has an estimated life of four 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 10%.The present value of $1 at compound interest rates of 10% for 1,2,3,and 4 years is .909,.826,.751,and .683,respectively.Determine the net present value.

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The Answer of Heedy Inc.is considering a capital investment proposal that costs $460,000 and has an estimated life of four 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 10%.The present value of $1 at compound interest rates of 10% for 1,2,3,and 4 years is .909,.826,.751,and .683,respectively.Determine the net present value.

Heedy Incis Considering a Capital Investment Proposal That Costs $460,000 and and Has