Citrus Company is considering a project that has estimated annual net cash flows of $32,000 for six years and is estimated to cost $150,000 Citruss cost of capital is 8 percent Calculate the net present value of the project and whether it is acceptable to Citrus ...

Year Annual Cash Flow PV Factor 8 Present Value 0 150000 1 ...

Citrus Company is considering a project that has estimated annual net cash flows of $32,000 for six

Question:

Citrus Company is considering a project that has estimated annual net cash flows of $32,000 for six years and is estimated to cost $150,000. Citrus’s is 8 percent. Calculate the of the project and whether it is acceptable to Citrus.

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... 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...