Question

Check my work Required information Use the following information for the Quick Study below. The following information applies to the questions displayed below.) Part 1 of 2 Park Co. is considering an investment that requires immediate payment of $29,480 and provides expected cash inflows of $9,100 annually for four years. Park Co. requires a 8% return on its investments 1.25 points QS 24-2 Net present value LO P3 eBook Hint 1-a. What is the net present value of this investment? (PV of $1. FV of $1. PVA of $1, and FVA of $1 (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) Ask Print Select Chart Amount x PV Factor - Present Value Cash Flow Annual cash flow References Net present value

Answer 1

Calculation of Net Present Value: Cash Flow Present Value Inflow OutFlow Select Chart Amount x PV Factor = Annual Cash Inflow $ 9,100.00 x 3.3121 = Initial Investment Net Present Value $ $ $ 30,140.11 (29,480.00) 660.11