If company enhanced maximum revenue by $140,000 plus $20,000 = $160,000. | |||
Year | Revenue | PV factor @25% | Present value |
Year 1 | $ 160,000 | 0.8000 | $ 128,000 |
Year 2 | $ 160,000 | 0.6400 | $ 102,400 |
Year 3 | $ 160,000 | 0.5120 | $ 81,920 |
Year 4 | $ 160,000 | 0.4096 | $ 65,536 |
Present value of cash inflow | $ 377,856 | ||
Less: Initial Investment | $ 400,000 | ||
Net Present Value | $ (22,144) | ||
The company should not accept the proposal of investment in the system because of net present value is negative. | Not Accept |
(20) 4. Your employer asked you to determine if the decision to invest of $400,000 is...
X=72 Q5. [20 marks) For this question, X is the first two digits (from the right) of your student ID. an Wolfpack Inc., a textile manufacturing company, is considering opening a production and shipping facility to keep up with demand for its pillows. The facility is expected to require an initial investment of $190,000 and will have a $36,000 salvage value after 5 years. Net annual revenue is estimated to be $100,000 while annual maintenance costs are estimated to be...
do PW Q5. [20 marks] For this question, X is the first two digits (from the right) of your student ID. Wolfpack Inc., a textile manufacturing company, is considering opening a production and shipping facility to keep up with demand for its pillows. The facility is expected to require an initial investment of $190,000 and will have a $36,000 salvage value after 5 years. Net annual revenue is estimated to be $100,000 while annual maintenance costs are estimated to be...
x=72 Q5. [20 marks) For this question, X is the first two digits (from the right) of your student ID. Wolfpack Inc., a textile manufacturing company, is considering opening a production and shipping facility to keep up with demand for its pillows. The facility is expected to require an initial investment of $190,000 and will have a $36,000 salvage value after 5 years. Net annual revenue is estimated to be $100,000 while annual maintenance costs are estimated to be X%...
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