Question: 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

 an 11. Use the partial chart below to determine the net

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 the cost of capital is 12%. Year 1 Year 2 Year 3 Year 4 Year 5 12% 0.89286 0.79719 0.71178 0.63552 0.56743 Year 6 Year 7 Year 8 Year 9 Year 10 0.50663 0.45235 0.40388 0.36061 0.32197 Should the company purchase the asset? Yes, No

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