A $400,000 capital investment proposal 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 12%. The present value of $1 at compound interest of 12% for 1, 2, 3, and 4 years is .893, .797, .712, and .636, respectively. Determine the net present value.

Question

A $400,000 capital investment proposal 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 12%. The present value of $1 at compound interest of 12% for 1, 2, 3, and 4 years is .893, .797, .712, and .636, respectively. Determine the net present value.

Quizplus · Accepted Answer

The Answer of A $400,000 capital investment proposal 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 12%. The present value of $1 at compound interest of 12% for 1, 2, 3, and 4 years is .893, .797, .712, and .636, respectively. Determine the net present value.

A $400,000 Capital Investment Proposal Has an Estimated Life of Four