Windsor Corporation, which operates an amusement park, is considering a capital iovestment in a new...
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Windsor Corporation, which operates an amusement park, is considering a capital iovestment in a new ride. The ride would cost $143,000 and have an estimated useful life of 5 years. The park will sell it for $66,400 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 $26,600. The comparys borrowing rate is 8%. Its cost of capital is 10%. Click here to view the factor table. Calculate the net present value of this project to the company. Of the net present value is negative, use either a negative sagn priceding the number es. 45 or parentheses e8. (45). For calculation purposes, use 5 decimal ploces as displayed in the foctor table provided, es. 125124. Round present value answer to 0 decimal places, es. 125
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