Question: Instructions: Find the Net Present Value for each item below. Also, indicate whether the potential investment is acceptable or unacceptable. 3. Maddie Company has the
Instructions: Find the Net Present Value for each item below. Also, indicate whether the potential investment is acceptable or unacceptable. 3. Maddie Company has the following information: i. Cost of new asset: $400,000 ii. Annual Net Income: $42,000 iii. Expected Life: 10 years iv. Salvage value of the new asset: $20,000 V. Discount Rate (minimum required return) : 14% Present Value of Cash Outflow: Present Value of Cash Inflows: Net Present Value Results
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