O'Malley Inc. purchased an asset costing $90,000. Annual operating cash inflows are expected to be $20,000...

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OMalley Inc. purchased an asset costing $90,000. Annual operating cash inflows are expected to be $20,000 each year for six

business accounting

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Answer 1

Answer #1

Present value of annuity cash inflow-

20000 * PVAIF_{(16%, 6)}

20000*3.6847 = 73694

Net Present Value = Present Value of Cash Inflow - Present Value of Cash Outflow

73694 - 90000 = -16306.

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Answer 2

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O'Malley Inc. purchased an asset costing $90,000. Annual operating cash inflows are expected to be $20,000...

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O'Malley Inc. purchased an asset costing $90,000. Annual operating cash inflows are expected to be $20,000...