Question
(ignore income taxes in this problem)the following data pertain to an investment proposal:
cost of the investment $30,000
Annual cost saving 9,000
estimated salvage value 4,000
life of the project 5 years
discount rate 12%
Which is the net present value of the proposed investment closest to?
a. 4,713
b. 19.000
c. 2,445
d. 2.268
cost of the investment $30,000
Annual cost saving 9,000
estimated salvage value 4,000
life of the project 5 years
discount rate 12%
Which is the net present value of the proposed investment closest to?
a. 4,713
b. 19.000
c. 2,445
d. 2.268