Calculate the net present value for wardex limited

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Problem 1: Wardex Limited is considering an investment in a fixed asset which costs $295,000. The asset is expected to generate cash inflows of $118,000 each year for the next four years. The company intends to sell the asset at the end of year 4 for an estimated residual value of $30,000. The asset will be depreciated straight-line over the next four years. The discount rate for the project is 14%. Calculate the net present value.

Reference no: EM132963044

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