The Whispering Winds Company is planning to purchase $458,000 of equipment with an estimated 7-year life...

 

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The Whispering Winds Company is planning to purchase $458,000 of equipment with an estimated 7-year life and no estimated salvage value. The company has projected the following annual cash flows for the investment: Year 1 2 3 t 5 6 7 Total Projected Cash Flows $215,000 136,000 105,000 58,400 61,900 43,600 46,600 $666,500 Calculate the net present value of the proposed equipment purchase. Whispering Winds uses a 6 % discount rate. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to O decimal place, e.g. 58,971.) Net present value $ The Whispering Winds Company is planning to purchase $458,000 of equipment with an estimated 7-year life and no estimated salvage value. The company has projected the following annual cash flows for the investment: Year 1 2 3 t 5 6 7 Total Projected Cash Flows $215,000 136,000 105,000 58,400 61,900 43,600 46,600 $666,500 Calculate the net present value of the proposed equipment purchase. Whispering Winds uses a 6% discount rate. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to O decimal place, e.g. 58,971.) Net present value $ The Whispering Winds Company is planning to purchase $458,000 of equipment with an estimated 7-year life and no estimated salvage value. The company has projected the following annual cash flows for the investment: Year 1 2 3 t 5 6 7 Total Projected Cash Flows $215,000 136,000 105,000 58,400 61,900 43,600 46,600 $666,500 Calculate the net present value of the proposed equipment purchase. Whispering Winds uses a 6 % discount rate. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to O decimal place, e.g. 58,971.) Net present value $ The Whispering Winds Company is planning to purchase $458,000 of equipment with an estimated 7-year life and no estimated salvage value. The company has projected the following annual cash flows for the investment: Year 1 2 3 t 5 6 7 Total Projected Cash Flows $215,000 136,000 105,000 58,400 61,900 43,600 46,600 $666,500 Calculate the net present value of the proposed equipment purchase. Whispering Winds uses a 6% discount rate. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to O decimal place, e.g. 58,971.) Net present value $

Answer rating: 100% (QA)

The formula for NPV is as follows NPVt1n CFt1rt Initial Investment Here CFt ... View the full answer