Pharoah Company is considering a long-term investment project called ZIP. ZIP will require an investment of $130,200. It will have a useful life of 4
Pharoah Company is considering a long-term investment project called ZIP. ZIP will require an investment of $130,200. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,600, and annual cash outflows would increase by $39,900. The company's required rate of return is 9%. Click here to view the factor table.
Calculate the net present value on this project. (If the net present value is negative, use either a negative sign preceding the number eg-45 or parentheses eg (45). Round present value answer to O decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.)
- Net present value:
Whether this project should be accepted?
2. The project should be
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