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florida1014 florida1014
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9 months ago

Basta Corporation has provided the following data concerning an investment project that it is considering:

Initial investment$ 780,000
Working capital $ 94,000
Annual cash flow$ 268,000per year
Salvage value at the end of the project$ 26,000

Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided.

The working capital would be released for use elsewhere at the end of the project in 4 years. The company’s discount rate is 8%. The net present value of the project is closest to:



▸ $101,816

▸ $126,726

▸ $32,726

▸ $318,000
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
Authors:
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iffn23iffn23
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9 months ago
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Anonymous
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3 weeks ago
Help! The answer is missing an explanation...
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3 weeks ago
Done!!!
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