A $350,000 capital investment proposal has an estimated life of four years and no residual value. The estimated net cash flows are as follows:
$\begin{array}{lll}
\text { Year }&\text { Net Cash flow }&\text { Year }&\text { Net Cash Flow }\
1&\$150,000&3&\$104,000\
2&130,000&4&90,000
\end{array}$ 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 $350,000 capital investment proposal has an estimated life of four years and no residual value. The estimated net cash flows are as follows:
 $\begin{array}{lll}
\text { Year }&\text { Net Cash flow }&\text { Year }&\text { Net Cash Flow }\
1&\$150,000&3&\$104,000\
2&130,000&4&90,000
\end{array}$  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.

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The Answer of A $350,000 capital investment proposal has an estimated life of four years and no residual value. The estimated net cash flows are as follows:
 $\begin{array}{lll}
\text { Year }&\text { Net Cash flow }&\text { Year }&\text { Net Cash Flow }\
1&\$150,000&3&\$104,000\
2&130,000&4&90,000
\end{array}$  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 $350,000 Capital Investment Proposal Has an Estimated Life of Four