Initial capital investment Estimated useful life Estimated disposal value in 3 years Estimated annual savings in...
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Initial capital investment Estimated useful life Estimated disposal value in 3 years Estimated annual savings in cash operating costs(end of year) Minimum desired rate of return Present value of ordinary annuity of one, 3 periods at 10% Present value of one, 3 periods at 10% $200,000 3 years $1,000 $100,000 10% 2.4869 0.7513 Q Zoom Camille Company is considering the following investment: Assume straight-line depreciation is used. Ignore income taxes. The net present value of the investment is A $49,441 B $50,112 C $48,330 D $47,855 Initial capital investment Estimated useful life Estimated disposal value in 3 years Estimated annual savings in cash operating costs(end of year) Minimum desired rate of return Present value of ordinary annuity of one, 3 periods at 10% Present value of one, 3 periods at 10% $200,000 3 years $1,000 $100,000 10% 2.4869 0.7513 Q Zoom Camille Company is considering the following investment: Assume straight-line depreciation is used. Ignore income taxes. The net present value of the investment is A $49,441 B $50,112 C $48,330 D $47,855
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