Answered

Westonci.ca connects you with experts who provide insightful answers to your questions. Join us today and start learning! Explore in-depth answers to your questions from a knowledgeable community of experts across different fields. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

The following data pertain to an investment proposal (Ignore income taxes.):

Cost of the investment $35,000
Annual cost savings $12,000
Estimated salvage value $6,000
Life of the project 5 years
Discount rate 18%

Required:
Determine the appropriate discount factor(s) using the tables provided.

Sagot :

Tundexi

The net present value of the proposed investment is closest to $5,146.

Net present value = Present value of cash-flows - Initial investment

Given Information

PV of cashflows at 18%

Cash flows                            PV at 18%     P.V. of cash-flows

$12,000 (Cost saving)            3.127                 $37,524

$6,000 (Salvage)                   0.437                 $2,622

Total                                                                   $40,146

Net present value = $40,146 - $35,000

Net present value = $5,146

Therefore, the net present value of the proposed investment is closest to $5,146.

Learn more about Net present value

brainly.com/question/25748668

We hope this was helpful. Please come back whenever you need more information or answers to your queries. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.