Your storage firm has been offered $96,100 in one year to store some goods for one year. Assume your costs are $97,000, payable immediately,and the cost of capital is 8.9%. Should you take the contract?The NPV will be $(Round to the nearest cent.)

Cash flow in one year = $96,100Cost of capital (k) = 8.9% or 0.089Initial investment = $97,000We…

Answered: Your storage firm has been offered…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 5PA: Falkland, Inc., is considering the purchase of a patent that has a cost of $50,000 and an estimated...

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Your storage firm has been offered $96,100 in one year to store some goods for one year. Assume your costs are $97,000, payable immediately, and the cost of capital is 8.9%. Should you take the contract? The NPV will be $ (Round to the nearest cent.)