Facio Corporation has provided the following data concerning an investment project that it is considering: Initial investment$770,000 Working capital$65,000 Annual cash flow $274,000per yearSalvage value at the end of the project$20,000 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 in 3 years. The company's discount rate is 8%. The net present value of the project is closest to:
A. $52,000
B. $3,588
C. $(61,412)
D. $(113,022)
Answer: C
You might also like to view...
The management department at a local university began posting all assignments and other class materials to a course management website instead of creating a packet for students to purchase each term. This is a(n) ______ innovation.
A. practice B. product C. process D. adaptive E. reactive
The following information is available for Jade Company for the month ending June 30, 2017
" ¢ Balance as per the bank statement is $12,000. " ¢ Balance as per books is $10,300 • Check #506 for $1,200 and check #510 for $800 were not shown on the June 30, bank statement. • A deposit in transit of $3,000 had not been received by the bank when the bank statement was generated. • A bank debit memo indicated an NSF check for $100 written by Jane Smith to Jade Company on June 13. • A bank credit memo indicated a note collected by the bank of $2,100 and interest revenue of $51 on June 20. • The bank statement indicated service charges of $30. What is the adjusted book balance? A) $12,351 B) $12,321 C) $8,351 D) $8,300
Bild-It-Rite Corporation is a public company that is preparing to issue securities that do not qualify for an exemption from registration. This means that Bild-It-Rite must
a. file a registration statement with the SEC. b. issue the securities through an online registration site. c. refrain from issuing the securities to unregistered investors. d. register the securities with a national stock exchange.
A debtor who does not make the required payments on a secured real estate transaction is considered to be ________.
A. liquidated B. judgment-proof C. in default D. collateralized