Question

nt CALCULATOR FULL SCREEN PRINTER VERSION « BACK NEXT Do It! Review 25-02 Z Your answer is partially correct. Try again. Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $136,200. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,000, and annual cash outflows would increase by $38,500. The company's required rate of return is 8%. Click here to view the factor table. Calculate the net present value on this project. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round present value answer to 0 decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value Whether this project should be accepted? accepted The project should be LINK TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor.

Answer 1

Net present Value $ 1,253 Project should be accepted Estimated Cash Inflows Estimated Cash Outflows Net anunual inflow $ $ $ 80,000 (38,500) 41,500 year1 year2 year3 year4 Annuity PV factor@ 8% 0.92593 0.85734 0.79383 0.73503 3.31213 Annuity factor 8%, 4years 3.31213 Present value of inflow $ 137,453 Capital Investent Net present Value 136200 1,253 $ please comment if you have any doubt Please give thumps up if you satisfied with the answer