Present Values: Capital Budgeting $-$ Knowledge Check

Knowledge Check

Walen Co$.$ has intends to purchase a new forklift for $$85,000\mathrm{.}00$ cash. It expects annual net operating cash flows of $$14,500$ per year for $8$ years, and a salvage value at the end of $8$ years of $$8,100.$ Walen uses a $8\%$ discount rate. What is the net present value of the investment? $($For calculation purposes, use five decimal places as displayed in the factor table provided. Round your answer to two decimal places $($e$.$g$.,52\mathrm{.}75).)$

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