Test: Final Examination

Test: Final Examination < Question 13 of 13 This test: 100 point(s) possible This question: 15 point(s) possible Submit test Glamour industries is considering investing $625,000 In equipment that Will have no residual value. The equipment is expected to result in annual net cash inflows of $105,000 per year for the next ten years. Glamour Industri required rate Of return is 12% What is the net present value (NPV) of the equipment investment? Is this a favorable investment? (Click the icon to view the present value of an annuity table.) (Click the icon to view the future Value of an annuity table.) (Click the icon to view the present value table.) (Click the icon to view the future value table.) (Roun your answer to the nearest whole dollar- Use parentheses or a minus sign for a negative net present value.) The net present value o the equipment investment is $0 V Glamour Industries, minimum required rate of return. Therefore, the investment is