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Timo Corporation, which operates an amusement park, is considering a capital investment in a new...

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Accounting

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Timo Corporation, which operates an amusement park, is considering a capital investment in a new ride. The ride would cost $124,000 and have an estimated useful life of 5 years. The park will sell it for 68,800 at that time (Amusement parks need to rotate rides to keep people interested. The ride will be expected to increase net annual cash flows by $21,200. The company's borrowing rate is 896 Its cost of capital is 10%. Click here to ev P table s te is 8%.lts Calculate the net present value of this project to the company. (If the net present value is negative, use either a negative sign preceding the number e.g.-45 or parentheses e.g. (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124. Round present value answer to 0 decimal places, e.g. 125.) Net present value s

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