Quail Company is considering buying a food truck that will yield net cash inflows of $13,000...

 

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Quail Company is considering buying a food truck that will yield net cash inflows of $13,000 per year for seven years. The truck costs $41,000 and has an estimated $6,700 salvage value at the end of the seventh year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Enter negative net present values, if any, as negative values. Round your present value factor to 4 decimals.) What is the net present value of this investment assuming a required 10% return? Years 1-7 Totals Net present value Net Cash Flows PV Factor II Present Value of Net Cash Flows II Quail Company is considering buying a food truck that will yield net cash inflows of $13,000 per year for seven years. The truck costs $41,000 and has an estimated $6,700 salvage value at the end of the seventh year. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Enter negative net present values, if any, as negative values. Round your present value factor to 4 decimals.) What is the net present value of this investment assuming a required 10% return? Years 1-7 Totals Net present value Net Cash Flows PV Factor II Present Value of Net Cash Flows II

Answer rating: 100% (QA)

To calculate the net present value NPV of this investment we need to discount the net cash flows to ... View the full answer