Net present value​ calculation)  Dowling Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of ​$5,500,000 and would generate annual net cash inflows of ​$1,100,000 per year for 6 years. Calculate the​ project's NPV using a discount rate of 8 percent. If the discount rate is 8 ​percent, then the​ project's NPV is ​$. ​(Round to the nearest​ dollar.)

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 2PA: Jasmine Manufacturing is considering a project that will require an initial investment of $52,000...
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 (Net present value​ calculation)  Dowling Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of
​$5,500,000
and would generate annual net cash inflows of
​$1,100,000
per year for
6
years. Calculate the​ project's NPV using a discount rate of
8
percent.
If the discount rate is
8
​percent, then the​ project's NPV is
​$.
​(Round to the nearest​ dollar.)
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