What is net present value if cost of capital is ten percent

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Reference no: EM131975125

Problem

Schaefer Organic Farms purchased a new tractor at a cost of $81,000. Annual operating cash inflows are expected to be $36,000 each year for four years. At the end of the tractor's useful life, the salvage value of the tractor is expected to be $3,000.

What is the net present value if the cost of capital is 10 percent? Use the time value of money charts for your calculations.

Reference no: EM131975125

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