XYZ Company has an opportunity to purchase an asset that will cost the company $60,000....
80.2K
Verified Solution
Link Copied!
Question
Accounting
XYZ Company has an opportunity to purchase an asset that will cost the company $60,000. The asset is expected to have $12,000 annual after-tax cash flows per year. Assuming that the companys required rate of return is 10%, that the asset has a 5-year useful life and a $1,000 after-tax salvage value, what is the net present value of the investment? Should the investment be accepted? This is the answer but I need to know how to find it by hand. Thank you [ NPV = ($13,890). Should not be accepted, because NPV < 0]
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.