M11 7 Calculating Net Present Value, Predicting Internal Rate of Return LO 11 3, 11 4 Vaughn Company has the following information about a potential capital investment Initial investment $ 460,000 Annual cash inflow $ 78,000 Expected life 10 years Cost of capital 10 1 Calculate the net present value of this project (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1 ) (Use appropriate factor(s) from the tables provided Round the final answer to nearest whole dollar )

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Question: M11-7 Calculating Net Present Value, Predicting Internal Rate of Return [LO 11-3, 11-4] Vaughn Company has the following information about a potential capital investment: Initial

M11-7 Calculating Net Present Value, Predicting Internal Rate of Return [LO 11-3, 11-4]

Vaughn Company has the following information about a potential capital investment:


Initial investment	$	460,000
Annual cash inflow	$	78,000
Expected life		10 years
Cost of capital		10%

1. Calculate the net present value of this project. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Round the final answer to nearest whole dollar.)

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