Solution-Prepare a analysis to calculate the net present

Prepare a analysis to calculate the net present value

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Reference no: EM132561556

Fontenot Seafood Company is thinking about building a new pier which will cost $280,000. Fontenot expects to get 5 years of use out of the pier, after which it will be sold for $150,000. Fontenot estimates that there will be annual cash flows of $55,000 resulting from the new pier. Fontenot's borrowing rate is 8% and it cost of capital is 10%.

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Question 1: Prepare a analysis to calculate the net present value of the pier and discuss whether this pier is a good investment for the Company.

Reference no: EM132561556

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Prepare a analysis to calculate the net present value : Prepare a analysis to calculate the net present value of the pier and discuss whether this pier is a good investment for the Company.

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Prepare a analysis to calculate the net present value

Reference no: EM132561556

Reference no: EM132561556

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