Net present value if the cost of capital

Assignment Help Financial Accounting

Reference no: EM13918786

Basic NPV with Salvage Value

Schaefer Organic Farms purchased a new tractor at a cost of $80,000. Annual operating cash inflows are expected to be $30,000 each year for four years. At the end of the tractor's useful life, the salvage value of the tractor is expected to be $5,000.

Required:

What is the net present value if the cost of capital is 12 percent? Use the time value of money charts for your calculations. (Ignore income taxes.) Round your answer to the nearest whole number.

NOTE

I have seen this posted before, but each answer that I plug in, is incorrect. The reoccurring theme I have seen with the answers have been either $14300, $14299.50.

Reference no: EM13918786

Questions Cloud

Common stock as a long term investment : Common stock as a long term investment. Steig. Corporation uses the equity method of accounting for this investment.

Identify the four basic financial statements : Identify the four basic financial statements. Describe the purpose of each of the four financial statements. Discuss how the financial statements would be useful to internal users, such as to managers and employees. Discuss how the financial statemen..

Report for the insurance company : Suzuki is fully insured for fire losses but must prepare a report for the insurance company.Compute the gross profit rate for November.

European distribution center site : American International Automotive Industries (AIAI) manufactures auto and truck engine, transmission, and chassis parts for manufacturers and repair companies in the United States, South America, Canada, Mexico, Asia and Europe. The company transp..

Net present value if the cost of capital : What is the net present value if the cost of capital is 12 percent? Use the time value of money charts for your calculations. (Ignore income taxes.) Round your answer to the nearest whole number.

Why is innovation important to the growth of organizations : How would you characterize and contrast these different types of characteristics? Can you relate them to your own experience in your work environment?

What is the expected project completion time : Draw a project network. Develop an activity schedule. What are the critical activities, and what is the expected project completion time?

What market factors affect the commercialization process : What are the arguments for and against allowing temporary monopolies by allowing intellectual property rights? What forms of intellectual property exist for designs, and how are these different from patents and copyright?

Services for a publicly traded audit client : Question 1: A CPA firm is considered independent when it performs which of the following services for a publicly traded audit client? Question 2: Which of the following is not an aspect of Rule 201 of the General Standards of the Code of Profession..

User Account

All Pages