Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. parks corporation is considering an investment pro

Parks Corporation is considering an investment proposal in which a working capital investment of $10,000...

90.2K

Verified Solution

Question

Accounting

Parks Corporation is considering an investment proposal in which a working capital investment of $10,000 would be required. The investment would provide cash inflows of $2,000 per year for six years. The working capital would be released for use elsewhere when the project is completed. If the company's discount rate is 10%, the investment's net present value is closest to (Ignore income taxes.):

Select one:

a. $1,290

b. ($1,290)

c. $2,000

d. $4,350

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

Wave number of a spectral line in the Lyman seri of H atom is 82260...

Advance Math
1.2K views

Solve the given differential equation by undetermined coefficients. y'' − y' + (1/4) y = 6...

Economics
1.2K views

Suppose a typical income leisure constraint. The wage rate for a typical consumer is $20 per hour,...

Chemistry
1.2K views

Use the table to calculate the total Calories in each food. Calorie Content and Examples of...

Psychology
1.2K views

I'M SORRY BUT I COULD NOT FIND ENGLISH ON THE SUBJECT. THIS IS FOR ENGLISH NOT...

Biology
1.2K views

The release of newly synthesized nonenveloped viruses usually occurs by Olysis budding exocytosis both lysis...

Biology
1.2K views

Which of the following is an important security precaution I Assure that the senders have...

Basic Math
1.2K views

A coffee company has found that the marginal cost in dollars per pound of the...

Calculus
1.2K views

ind the arc length parameter along the given curve from the point where t 0...

Accounting
1.2K views

Question 3 Journal Entries and Shareholders Equity (15 marks) Talize Inc. has...

Accounting
1.2K views

please solve the following based on the data- overhead & controllable variances (please also show...

Accounting
1.2K views

Exercise 5-8 All That Blooms provides environmentally friendly lawn services for homeowners. Its operating costs...