Dax Company is considering an investment with the following information. a. Compute the net present value...

 

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Dax Company is considering an investment with the following information. a. Compute the net present value of the investment. b. Determine whether the investment should be accepted or rejected on the basis of net present value. Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of the investment. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Enter net cash outflows as negative values.) Year Year 1 Year 2 Year 3 Totals Initial investment Net present value Net Cash Flows $ $ 9,800 11,800 13,800 35,400 Present Value of 1 at 11% 0.9009 0.8116 0.7312 Present Value of Net Cash Flows $ < Required A 0 (31,000) (31,000) Required B > Dax Company is considering an investment with the following information. a. Compute the net present value of the investment. b. Determine whether the investment should be accepted or rejected on the basis of net present value. Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of the investment. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Enter net cash outflows as negative values.) Year Year 1 Year 2 Year 3 Totals Initial investment Net present value Net Cash Flows $ $ 9,800 11,800 13,800 35,400 Present Value of 1 at 11% 0.9009 0.8116 0.7312 Present Value of Net Cash Flows $ < Required A 0 (31,000) (31,000) Required B >

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a Year Year 1 Year 2 Year 3 Totals Initial Investment Net ... View the full answer