Homework Answers
Initial investment = -250000
Cash Inflow:
| present value of annual cash inflow (PVA15%,10*Annual cash flow] |
5.01877*32000 160600.64 |
| Present value of salvage value |
.24718* 5000 1235.90 |
| Total cash Inflow | 161836.54 |
.
NPV = Present value -Initial investment
= 161836.54 - 250000
= - 88163.46
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Kimmel Company has provided the following data concerning a
proposed investment project
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