FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Mary is considering opening a hobby and craft store. Mary plans to operate the business for six years. Mary requires a minimum 6% return on this investment. Ignore income taxes in this problem.) The data pertaining to her investment opportunity are:

Cost of equipment                                                 $ 175,000

Working capital needed                                        $ 185,000

Annual cash inflow from sales                             $ 190,000

Annual cash outflow for operating costs              $ 145,000

Salvage value of equipment                                 $   20,000

 Mary plans to operate the business for six years. Mary requires a minimum 6% return on this investment.

What is the present value factor you will use for the net annual cash flows?  Enter your answer to three decimals.

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