QI/ Ipswich Corporation is considering an investment opportunity with the expected net cash inflows of $300,000 for four years. The residual value of the investment, at the end of four years, would be $70,000. The company uses a discount rate of 14%, and the initial investment is $290,000. Calculate the NPV of the investment. Present value of an ordinary annuity of $1: 12% 13% 14% 15% D0.8930,885 0.877 0.87 21.69 1.668 1.647 1.626 32.4022.361 2.322 2.283 43.0372.974 2.914 2.855 $3.605 3.5173.4333.352 Present value of $1: 12% 13% 14% 15% D0.8930.885 0.877 0.87 20.7970.7830.7690.756 30.7120.693 0.675 0.658 0.636 0.6130.592 0.572 50.567 0.5430.5190.497

QI/ Ipswich Corporation is considering an investment opportunity with the expected net cash inflows of $300,000 for four years. The residual value of the investment, at the end of four years, would be $70,000. The company uses a discount rate of 14%, and the initial investment is $290,000. Calculate the NPV of the investment. Present value of an ordinary annuity of $1: 12% 13% 14% 15% D0.8930,885 0.877 0.87 21.69 1.668 1.647 1.626 32.4022.361 2.322 2.283 43.0372.974 2.914 2.855 $3.605 3.5173.4333.352 Present value of $1: 12% 13% 14% 15% D0.8930.885 0.877 0.87 20.7970.7830.7690.756 30.7120.693 0.675 0.658 0.636 0.6130.592 0.572 50.567 0.5430.5190.497

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 3CMA

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