Bee Corp. has been offered a four-year contract to supply the computing requirements for a local bank.
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Question:
Bee Corp. has been offered a four-year contract to supply the computing requirements for a local bank.
Cash flow information
cost of computer equipment 250,000
working capital required 20,000
upgrading of equipment in 2 years 90,000
salvage value of equipment in 4 years 10,000
annual net cash inflow 120,000
The working capital would be released at the end of the contract Bee Corp requires a 14% rate of return.
Required: Calculate NPV using a spreadsheet.
Expert Answer:
NPV inflow outflow Inflow present value of annual cashflow of 120000 2914 PVAF14 4years 3496... View the full answer
Related Book For 
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
Posted Date:
