Question: 1.Use the partial chart below to determine the net present value of an asset whose initial cost is $80,000 and will generate an annual net

1.Use the partial chart below to determine the net present value of an asset whose initial cost is $80,000 and will generate an annual net cash flow of $12,000 for ten years. The discount rate or the cost of capital is 12%.

12%

Year 1

0.89286

Year 2

0.79719

Year 3

0.71178

Year 4

0.63552

Year 5

0.56743

Year 6

0.50663

Year 7

0.45235

Year 8

0.40388

Year 9

0.36061

Year 10

0.32197

Should the company purchase the asset?____Yes,_____No

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Use the partial chart below to determine the net present value of an asset whose initial cost is $80,000 and will generate an annual net cash flow of $12,000 for ten years. The discount rate or the...

Q:

Use the partial chart below to determine the net present value of an asset whose initial cost is $80,000 and will generate an annual net cash flow of $12,000 for ten years. The discount rate or the...

Q:

Use the partial chart below to determine the net present value of an asset whose initial cost is $80,000 and will generate an annual net cash flow of $12,000 for ten years. The discount rate or the...

Q:

Use the partial chart below to determine the net present value of an asset whose initial cost is $80,000 and will generate an annual net cash flow of $12,000 for ten years. The discount rate or the...

Q:

please complete #11 11. Use the partial chart below to determine the net present value of an asset whose initial cost is $80,000 and will generate an annual net cash flow of $12,000 for ten years....

Q:

Use the chart above to calculate the net present value of an investment whose initial cost is $11,500 and will generate an annual net cash flow as shown below. Year 1 = $2,000 Year 2 = $3,000 Year 3...

Q:

Use the chart above to calculate the net present value of an investment whose initial cost is $11,500 and will generate an annual net cash flow as shown below. Year 1 = $2,000 Year 2 = $3,000 Year 3...

Q:

Use the chart above to calculate the net present value of an investment whose initial cost is $11,500 and will generate an annual net cash flow as shown below. Year 1 = $2,000 Year 2 = $3,000 Year 3...

Q:

please complete #12 12. Use the chart above to calculate the net present value of an investment whose initial cost is $11,500 and will generate an annual net cash flow as shown below. Year 1 = $2,000...

Q:

an 11. Use the partial chart below to determine the net present value of asset whose initial cost is $80,000 and will generate an annual net cash flow of $12,000 for ten years. The discount rate or...

Q:

Why does the short-run MC curve cut both the ATC and AVC curves at their minimum points?

Q:

DISCUSS THE CONCEPT OF GIG WORKERS. What are the challenges associated with them ?

Q:

Problem 15-58 Liquidity Analysis The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: Beginning balances: Inventory...

Q:

HOW TO PREPARE A DEVELOPMENT STRATEGY INCLUDING STARUP PLAN, KEY MILESTONES, ONGOING DEVELOPMENT, PROPRIETARY POSITION FOR A VENTURE THAT IS SMART TAGS THAT TELL YOU THE FRESHNESS OF YOUR FOODS

Q:

Engage everyone in the dialogue

Q:

1. Given your basic mental state, i.e. the state you often return to. Give this state a name that you recognize and that is easy to remember, such as irritability, frustration, joy, etc. Also give...

Q:

5. The next time a negative event occurs, or a negative memory occurs, think about how you need to perform to make this a success story.