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Park Co. is considering an investment that requires immediate payment of $21,555 and provides expected...

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Accounting

Park Co. is considering an investment that requires immediate payment of $21,555 and provides expected cash inflows of $6,800 annually for four years. Park Co. requires a 8% return on its investments.

1-a. What is the net present value of this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.)

Cash Flow Select Chart Amount x PV Factor = Present Value
Annual cash flow =
Net present value

Based on NPV alone, should Park Co. invest?

  • Yes

  • No

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