Question: Does the borrowing rate impact the NPV calculation? Flint Company is considering investing in a new dock that will cost $760,000. The company expects to

Does the borrowing rate impact the NPV calculation? Flint Company is considering

Does the borrowing rate impact the NPV calculation?

Flint Company is considering investing in a new dock that will cost $760,000. The company expects to use the dock for 5 years, after which it will be sold for $500,000. Flint anticipates annual cash flows of $310,000 resulting from the new dock. The company's borrowing rate is 8%, while its cost of capital is 11%. Click here to view PV tables. Calculate the net present value of the dock. (Use the above table.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 5,275.) Net present value $ Indicate whether Flint should make the investment. Flint the project. Flint Company is considering investing in a new dock that will cost $760,000. The company expects to use the dock for 5 years, after which it will be sold for $500,000. Flint anticipates annual cash flows of $310,000 resulting from the new dock. The company's borrowing rate is 8%, while its cost of capital is 11%. Click here to view PV tables. Calculate the net present value of the dock. (Use the above table.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 5,275.) Net present value $ Indicate whether Flint should make the investment. Flint the project

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