M11-6 (Algo) Calculating Net Present Value [LO 11-3]Citrus Company is considering a project with estimated annual net cash flows of $30,885 for four years that is estimated to cost$145,000. Citrus's cost of capital is 13 percent.Required:1. Determine the net present value of the project. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present ValueAnnuity of $1.)2. Based on NPV, determine whether project is acceptable to Citrus.Complete this question by entering your answers in the tabs below.Required 1 Required 2Determine the net present value of the project. (Future Value of $1, Present Value of $1, Future Value Annuity of $1,Present Value Annuity of $1.)Note: Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign. Round yourfinal answer to 2 decimal places.Net Present Value< Required 1Required 2 >Show less▲

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Answered: M11-6 (Algo) Calculating Net Present…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 3CMA

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