Byerly Corporation has provided the following data concerning an investment project that it is considering: Initial investment$670,000 Working capital$61,000 Annual cash flow $227,000per yearSalvage value at the end of the project$20,000 Expected life of the project 3yearsDiscount rate 10%Refer to 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. The net present value of the project is closest to:
A. $(105,847)
B. $(44,847)
C. $(151,658)
D. $11,000
Answer: A
You might also like to view...
One concern of the internal auditor is the efficiency with which the organization is run
a. True b. False Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
Opinion is virtually unanimous that SFAC No. 5 on recognition and measurement is the low point of the conceptual framework.
In NCAA College Football, the Heisman Trophy is given to the top player, without regard to the performance of the player's team. The award could go to a player whose team does not even reach the playoffs. This award is an example of ________ interdependence.
A. low task B. high task C. low outcome D. high outcome E. low goal
In a make-or-buy break-even analysis, F’s refer to _______.
a. fixed costs b. variable costs c. both fixed and variable costs d. neither fixed nor variable costs