1. Given the following information and ignoring taxes, what is the annual cash revenue that will...

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Finance

1. Given the following information andignoring taxes, what is the annual cash revenue that will make thenet present value equal to zero (i.e., the annual cash revenue thatwill cause us to break-even in the financialsense)?
Annual cash costs = $14,000
Life of project = 8 years
Initial cost of project = $30,000
Salvage value at end of project = $2,000
Required rate of return = 15%

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4.4 Ratings (861 Votes)

Present value of annual cash costs 14000 4487322 6282250 Present value of initial cost 30000 1 3000000 Present value of salvage value 2000 See Answer

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1. Given the following information andignoring taxes, what is the annual cash revenue that will make thenet present value equal to zero (i.e., the annual cash revenue thatwill cause us to break-even in the financialsense)? Annual cash costs = $14,000Life of project = 8 yearsInitial cost of project = $30,000Salvage value at end of project = $2,000Required rate of return = 15%