Moates Corporation has provided the following data concerning an investment project that it is considering: Initial...
Moates Corporation has provided the following data concerning an investment project that it is considering:
| Initial investment | $ | 250,000 | |
| Annual cash flow | $ | 119,000 | per year |
| Expected life of the project | 4 | years | |
| Discount rate | 8 | % | |
Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.
The net present value of the project is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Multiple Choice
$250,000
$144,128
$(131,000)
$(144,128)
Homework Answers
Present value of cash inflows = Annual cash flow * PVIFA (N,I) where N = 4 and I = 8%
= 119000 * PVIFA (4, 8%) = 119000 * 3.3121
= 394135
Net present value = PV of cash inflows - Initial investment = 394135 - 250000
= 144135
Correct choice : 144128
Add Answer to:
Moates Corporation has provided the following data concerning an investment project that it is considering: Initial...
Moates Corporation has provided the following data concerning an investment project that it is considering: Initial...
Moates Corporation has provided the following data concerning an investment project that it is considering: Initial investment $ 200,000 Annual cash flow $ 123,000 per year Expected life of the project 4 years Discount rate 10 % Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the project is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Moates Corporation has provided the following data concerning an investment project that it is considering: Initial...
Moates Corporation has provided the following data concerning an investment project that it is considering: Initial investment Annual cash flow Expected life of the project Discount rate $410,000 $117,000 per year 4 years 9% Click here to view Exhibit 7B-1 and Exhibit 7B-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the project is closest to: Multiple Choice O $378,963 $378,963 $(31,037) $410,000 $58,000
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