Atkinson Corporation is considering an investment opportunity with the following expected net cash inflows: Year 1,...
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Atkinson Corporation is considering an investment opportunity with the following expected net cash inflows: Year 1, $245,000; Year 2, $290,000; Year 3, $315,000. At the end of Year 3, the residual value of the investment would be $45,000. The company uses a discount rate of 10%, and the initial investment is $475,000. Calculate the NPV of the investment. (Round intermediary calculations to the nearest dollar) Present value of an ordinary annuity $1: 10% 0.909 1 2 3 4 5 1.736 2.487 3.170 3.791 Present value of $1: 10% 12% 0.893 1.690 2.402 3.037 3.605 12% The NPV of the investment is 14% 0.877 1.647 2.322 2.914 3.433 14% 16% 0.862 1.605 2,246 2.798 3.274 16% Present value of $1: 10% 0.909 0.826 0.751 0.683 0.621 12345 12% 0.893 0.797 0.712 0.636 0.567 14% 0.877 0.769 0.675 0.592 0.519 16% 0.862 0.743 0.641 0.552 0.476 *** Atkinson Corporation is considering an investment opportunity with the following expected net cash inflows: Year 1, $245,000; Year 2, $290,000; Year 3, $315,000. At the end of Year 3, the residual value of the investment would be $45,000. The company uses a discount rate of 10%, and the initial investment is $475,000. Calculate the NPV of the investment. (Round intermediary calculations to the nearest dollar) Present value of an ordinary annuity $1: 10% 0.909 1 2 3 4 5 1.736 2.487 3.170 3.791 Present value of $1: 10% 12% 0.893 1.690 2.402 3.037 3.605 12% The NPV of the investment is 14% 0.877 1.647 2.322 2.914 3.433 14% 16% 0.862 1.605 2,246 2.798 3.274 16% Present value of $1: 10% 0.909 0.826 0.751 0.683 0.621 12345 12% 0.893 0.797 0.712 0.636 0.567 14% 0.877 0.769 0.675 0.592 0.519 16% 0.862 0.743 0.641 0.552 0.476 ***
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Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 9780133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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