Quail Company is considering buying a food truck that will yield net cash inflows of $13,800 per year for seven years. The truck costs $40,000 and has an estimated $6,300 salvage value at the end of the seventh year. (PV of $1. EV of $1. PVA of $1, and EVA of S1) (Use appropriate factor(s) from the tables provided. Enter negative net present values, if any, as negative values. Round your present value factor to 4 decimals.) What is the net present value of this investment assuming a required 12% return? Years 1-7 Totals Net present value Net Cash Flows x PV Factor Present Value of Net Cash Flows $ 0 0

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 1PA: Your company is planning to purchase a new log splitter for is lawn and garden business. The new...
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Quail Company is considering buying a food truck that will yield net cash inflows of $13,800 per year for seven years. The truck costs
$40,000 and has an estimated $6,300 salvage value at the end of the seventh year. (PV of $1. EV of $1. PVA of $1, and EVA of $1) (Use
appropriate factor(s) from the tables provided. Enter negative net present values, if any, as negative values. Round your present
value factor to 4 decimals.)
What is the net present value of this investment assuming a required 12% return?
Years 1-7
Totals
Net present value
Net Cash Flows x PV Factor
Present Value of
Net Cash Flows
$
0
0
Transcribed Image Text:s Quail Company is considering buying a food truck that will yield net cash inflows of $13,800 per year for seven years. The truck costs $40,000 and has an estimated $6,300 salvage value at the end of the seventh year. (PV of $1. EV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided. Enter negative net present values, if any, as negative values. Round your present value factor to 4 decimals.) What is the net present value of this investment assuming a required 12% return? Years 1-7 Totals Net present value Net Cash Flows x PV Factor Present Value of Net Cash Flows $ 0 0
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