Coyne Corporation is evaluating a capital investment opportunity. This project would require an initial investment of $36,000 t
o purchase equipment. The equipment will have a residual value at the end of its life of $5,000. The useful life of the equipment is 4 years. The new project is expected to generate additional net cash inflows of $19,000 per year for each of the four years. Coyne's required rate of return is 10%. The net present value of this project is closest to:+
1 answer:
Answer:
$27,643
Step-by-step explanation:
The net present value is the present value of after tax cash flows from an investment less the amount invested.
The formula for the NPV can be found in the attached image.
The NPV can be found using a financial calculator:
The cash flow for year zero = $-36,000
Cash flow from year one to three = $19,000
Cash flow for year four =$19,000 + $5,000 = $24,000
I = 10%
NPV = $27,643
I hope my answer helps you
You might be interested in
Answer: The correct option is second.
Explanation:
The given function is,
If we graph a function is f(x), then its coordinates is defined as (x,f(x)).
When the graph of f(x) is reflect across the x-axis, then the the x-coordinate remains the same and the sign of y-coordinate is changed. It means after reflecting across the x-axis,
The given given equation can be written as,
To find the equation of the graph after reflection across the x-axis multiply both sides by -1.
Because f(x)=y and g(x)=-y.
Therefore the second option is correct and the graph of both function is given below.
