Manama Beverage Company is considering an investment in a project that has rate of return of 20%. The only cash outflow for this project is the initial investment. The project is estimated to have an 8-year life and no salvage value. Cash inflows from this project are expected to be $100,000 per year in each of the 8 years. Manama's discount rate is 16%. What is the net present value of this project?
Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided.
$5,215
$15,464
$50,700
$55,831
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here