Recent Posts • Latest Topics • Unanswered Questions

Forise Water Company drills small commercial water wells. The company is in the process of analyzing ...

brendatanmy

wrote...

Go to Answer

Posts: 379

Rep:

5 years ago

Forise Water Company drills small commercial water wells. The company is in the process of analyzing ...

Forise Water Company drills small commercial water wells. The company is in the process of analyzing the purchase of a new drill. Information on the proposal is provided below.
Initial investment:
Asset$600,000
Working capital$ 128,000
Operations (per year for four years):
Cash receipts$450,000
Cash expenditures$ 190,000
Disinvestment:
Salvage value of drill (existing)$ 50,000
Discount rate18%

What is the net present value of the investment? Assume there is no recovery of working capital.
A) $(124,280)
B) $21,400
C) $82,724
D) $149,400

Read 515 times

8 Replies

Report

Replies

Answer verified by a subject expert

Yonigca

wrote...

Posts: 181

Rep:

5 years ago

1 Vote

Christian Price

Report

Related Topics

brendatanmy Author

wrote...

5 years ago

This helps so much, thank you for responding so quickly...

Report

Yonigca

wrote...

5 years ago

No worries, I was online and bored Grinning Face with Smiling Eyes

Report

trevor c.

wrote...

4 years ago

thank you

Report

Issabi C.

wrote...

3 years ago

Thank you

Report

joeypotatoes

wrote...

3 years ago

Thank you

Report

Briana B.

wrote...

3 years ago

Thanks!

Report

pxphxxnzwnginif

wrote...

3 years ago

thank you!

Report

New Topic

Quick Reply

Explore

Post your homework questions and get free online help from our incredible volunteers

863 People Browsing

Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook

Live Chat

Related Images

252

1041

Your Opinion

Previous poll results: Do you believe in global warming?

It's sore throat season, why does my mucus have red spots?

Strange Ingredients Lurking in Doritos Chips

The Toxic Skin and Fungi Defense

Bonobos, Chimpanzees, and the 98% DNA Link

Courses by Biology Forums

Ready to ask a question on Biology Forums? Try it out

Join Our Community

Biology Forums - Study Force is a free online homework help service catered towards college and high school students. Get homework help and answers to your toughest questions in biology, chemistry, physics, mathematics, engineering, accounting, business, humanities, and more. Master your assignments quickly with thousands of step-by-step solutions to countless textbook questions asked and answered by our members. If we don't have your question, don't worry. You can ask any homework question and get expert homework help in as little as two hours.

Our extensive online study community is made up of college and high school students, teachers, professors, parents and subject enthusiasts who contribute to our vast collection of study resources: textbook solutions, study guides, practice tests, practice problems, lecture notes, equation sheets and more. With our help, your homework will never be the same!

Join for free today

How is Biology Forums - Study Force different than tutoring?

Home Search Q & A Board Gallery Resource Library Blog Dictionary Chat	Quick Links Start a Topic Latest Topics Unanswered Questions Courses Study Tools Browse by Textbook	Social Facebook YouTube Community Stats Who's Online Trending Staff	Help About Us Take the Tour Study Tips Posting Guidelines Terms and Policies Contact Us
Biology Forums - Study Force © 2010-2024 \| Powered by SMF \| SMF © 2015, Simple Machines \| Sitemap Biology-Forums.com is not affiliated with any publisher. Book covers, title and author names appear for reference only.