(Ignore income taxes in this problem.) Farah Corporation has provided the follow

Question

(Ignore income taxes in this problem.) Farah Corporation has provided the following data concerning a proposed investment project:

The company uses a discount rate of 11%. The working capital would be released at the end of the project.

Compute the net present value of the project. (Round "PV Factor" to 3 decimal places. Round your other intermediate calculations and final answers to the nearest whole dollar.)(Use Exhibit 11B-1, Exhibit 11B-2)

(Ignore income taxes in this problem.) Farah Corporation has provided the following data concerning a proposed investment project:

Explanation / Answer

Net present value = Present value of cash inflow-Present value of cash outflow

= (160000*5.146+116000*0.434+32000*0.434)-(800000+32000)

Net present value = 55592

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.