Calculate the net present value of this project

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Question - Sunland Corporation, an amusement park, is considering a capital investment in a new exhibit. The exhibit would cost $160,365 and have an estimated useful life of 6 years. It can be sold for $60,300 at the end of that time. (Amusement parks need to rotate exhibits to keep people interested.) It is expected to increase net annual cash flows by $28,000. The company's borrowing rate is 8%. Its cost of capital is 10%. Calculate the net present value of this project to the company and determine whether the project is acceptable.

Reference no: EM133135786

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