Compute the net present value

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Reference no: EM13262068

Worldwide Scientific Equipment is considering a cash acquisition of Medical Labs for $2.7 million. Medical Labs will provide the following pattern of cash inflows and synergistic benefits for the next 25 years. There is no tax loss carryforward. Use Appendix D.

Years

	1-5	6-15	16-25
Cash inflow (aftertax)	$260,000	$280,000	$320,000
Synergistic benefits (aftertax)	31,000	41,000	61,000

The cost of capital for the acquiring firm is 10 percent.

Compute the net present value. (Round "PV Factor" to 3 decimal places. Round your answer to the nearest whole number and not in millions. Negative amount should be indicated by a minus sign. Omit the "tiny_mce_markerquot; sign in your response.)

Reference no: EM13262068

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