Pena Co. is considering an investment of $27,000 that provides net cash flows of $9,000 annually for

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Pena Co. is considering an investment of $27,000 that provides net cash flows of $9,000 annually for four years.

(a) If Pena Co. requires a 10% return on its investments, what is the net present value of this investment?

(b) Based on net present value, should Pena Co. make this investment?

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Fundamental Accounting Principles

ISBN: 9781260247985

25th Edition

Authors: John J Wild, Ken Shaw

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Question Posted: Oct 28, 2021 01:42 AM

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Pena Co. is considering an investment of $27,000 that provides net cash flows of $9,000 annually for

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Fundamental Accounting Principles

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