An asset is purchased for 240 000 It is expected to provide an additional 56 000 of annual net cash inflows The asset has a 10 year life and an expected salvage value of 24 000 The hurdle rate is 10 The present value of an annuity factor of 10 for 10 years is 6 1446 and the present value of 1 discounted for 10 years of 10 is 0 3855 Given the data provided the net present value of the investment is approximately

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Step 1 A method of capital budgeting that helps to ... View the full answer