INClass Ch13.pdf

# INClass Ch13 - In Class Chapter 13(Ignore income taxes in thiS problem Cooney[nc has providcd thc followingdata concenring a proposed inveshnent

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Class Chapter 13 l. (Ignore income taxes in thiS problem.) Cooney [nc. has providcd thc followingdata concenring a proposed inveshnent project: *q. .X*l- NtV Initial investment \$160,000 Life of the projeot. ..... 7 years Amual net cash inflows. .... \$40,000 Salvage value \$16,000 The company uses a discount rzte of l7'h. Required: Compute the net present value of the project. \+-i*nr \trs (z'to;\\\) 8\,,ooo zct poc \Rs qN\t\s \$.1\\^J \_.1 '1 3l',q-lir>v) \.ft iil. e"N hs-u^qtl S"\ v,Q. .ru, \t\b\ \'\ t, ( TJs 2. (Ignore income ta<es in this problem.) Strausberg Inc. is considering investing in a project that would require an initial investment of \$270,000. The iife of the project would be 6 years. The annual net cash infiows from the project would be \$81,000. The salvage value of the assets at the end of the project would be \$27,000. The company uses a discount rate of l0%o. Required: Compute the net present value of the project. [tvrlrtq

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## This note was uploaded on 09/08/2010 for the course BUS 21 at San Jose State University .

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INClass Ch13 - In Class Chapter 13(Ignore income taxes in thiS problem Cooney[nc has providcd thc followingdata concenring a proposed inveshnent

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