Use interest factors (14%) to the fifth decimal place. Calculate NPV. ...
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Accounting
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Use interest factors (14%) to the fifth decimal place. Calculate NPV.
Use interest factors (14%) to the fifth decimal place. Calculate NPV.
| Sales revenue | $ 720,000 |
| Costs of parts sold | (325,000) |
| Salaries, shipping, etc. | (300,000) |
| Annual net cash Inflows | ? |
| Cash Flows | 14% Factor | Present Value | ||
| Investment equipment | NOW | $ (264,540) | ? | |
| Working capital needed | NOW | (125,000) | ? |
|
| Annual net cash Inflows | 1-6 | 95,000 | 3.88867 |
|
| Refurbish equipment at end of 3 years | 3 | (60,000) | .67497 | |
| Salvage value of equipment at end 6 yrs | 6 | 8,000 | .45559 |
|
| Working capital released at end of 6 years | 6 | 125,000 | ? |
|
| Net present value |
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