The annual profit from an investment is $25,000 each year for 5 years and the cost...

 

Transcribed Image Text:

The annual profit from an investment is $25,000 each year for 5 years and the cost of investment is $80,000 with a salvage value of $45,000. The discount rate (cost of capital) at this risk level is 10%. Based on the given information, the net present value of the investment = $ (round your response to the nearest whole number). The annual profit from an investment is $25,000 each year for 5 years and the cost of investment is $80,000 with a salvage value of $45,000. The discount rate (cost of capital) at this risk level is 10%. Based on the given information, the net present value of the investment = $ (round your response to the nearest whole number).

Answer rating: 100% (QA)

To calculate the net present value NPV you can use the formula NPV fracCF11r1 frac... View the full answer