Question Content Area Falkland, Inc., is considering the purchase of a patent that has a cost of $51,000 and an estimated revenue producing life of 4 years. Falkland has a cost of capital of 10%. The...








  1. Question Content Area



    Falkland, Inc., is considering the purchase of a patent that has a cost of $51,000 and an estimated revenue producing life of 4 years. Falkland has a cost of capital of 10%. The patent is expected to generate the following amounts of annual income and cash flows:



























    Year 1

    Year 2

    Year 3

    Year 4
    Net income$5,100$6,500$6,300$3,000
    Operating cash flows16,90018,20018,45014,800

    (Click here to see present value and future value tables)


    A. What is the NPV of the investment?Round your present value factor to three decimal places and final answer to the nearest dollar.


    $fill in the blank 1



    B. What happens if the required rate of return increases?


    If the required rate of return increases,



    .


    Please round off please?










Jun 10, 2022
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