Question

Do It Review 24-2 Partially correct answer. Your answer is partially correct. Try again. Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $122,228. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $79,800, and annual cash outflows would increase by $39,900. The company’s required rate of return is 11%. Click here to view PV 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 Entry field with incorrect answer now contains modified data Whether this project should be accepted? The project should be Entry field with correct answer. Click if you would like to Show Work for this question:

Answer 1