Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 03 Apr 2018 My Price 6.00

Thunder Corporation

Thunder Corporation, an amusement park, is considering a capital investment in a new exhibit. The exhibit would cost $144,123 and have an estimated useful life of 7 years. It will be sold for $68,000 at that time. (Amusement parks need to rotate exhibits to keep people interested.) It is expected to increase net annual cash flows by $21,600. The company’s borrowing rate is 8%. Its cost of capital is 10%. Click here to view PV table.

Calculate the net present value of this project to the company and determine whether the project is acceptable. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round present value answer to 0 decimal places, e.g. 125.)

 

Net present value   $

 

The project

is notis

acceptable.

Answers

(5)
Status NEW Posted 03 Apr 2018 08:04 PM My Price 6.00

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