The net present value on this investment is closest to

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Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.)

  Investment required in equipment $540,000     
  Annual cash inflows $78,000     
  Salvage value $0     
  Life of the investment 20 years     
  Discount rate 10%

Click here to view Exhibit 13B-2 to determine the appropriate discount factor(s) using tables.

The net present value on this investment is closest to: (Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount.)

Reference no: EM13572440

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