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Hsung Company accumulates the following data concerning a proposed capital investment: cash cost $216,758, net annual cash flows $43,900, and present value factor of cash inflows for 10 years is 5.22 (rounded). (If the net present value is negative, use e

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Answer #1

Net present value = ($43,900 × 5.22) - $216,758

Net present value = $229,158 - $216,758

Net present value = $12,400

The invesment should be made.



answered by: gavin

> thank you!

Phuong Tue, May 18, 2021 8:26 AM

> thank you!

Phuong Tue, May 18, 2021 8:26 AM

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Hsung Company accumulates the following data concerning a proposed capital investment: cash cost $216,758, net annual cash flows $43,900, and present value factor of cash inflows for 10 years is 5.22 (rounded). (If the net present value is negative, use e
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