What is the net present value of an investment that costs $75,000 and has a salvage value $45,000 The annual profit from the investment is $15,000 each year for 5 years The cost of capital at this risk level is 12 ...

Initial investment 75000 Salvage value 45000 Fivey ...

What is the net present value of an investment that costs $75,000 and has a salvage value

Question:

What is the of an investment that costs $75,000 and has a $45,000? The annual profit from the investment is $15,000 each year for 5 years. The at this risk level is 12%?

Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at... Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important... Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...