Net present value

Declan MacManus is considering a capital budgeting project. This project will initially

require a $25,000 investment in equipment and a $3,000 working capital investment. The

useful life of this project is 5 years with an expected residual value of zero on the equipment.

The working capital will be released at the end of the 5 years. The new system is expected to

generate net cash inflows of $9,000 per year in each of the 5 years. Also a repair of the

equipment will be required at the END of year 3, costing $5,000. MacManus’ discount rate

is 14%. The net present value of this project is closest to (ignoring taxes):

Hire a Writer

Client Reviews

4.9

Sitejabber

4.6

Trustpilot

4.8

Our Guarantees

100% Confidentiality

Information about customers is confidential and never disclosed to third parties.

Original Writing

We complete all papers from scratch. You can get a plagiarism report.

Timely Delivery

No missed deadlines – 97% of assignments are completed in time.

Money Back

If you're confident that a writer didn't follow your order details, ask for a refund.

New to Homework Help? Sign up & Save

Calculate the price of your order

Type of paper needed:

Pages:

You will get a personal manager and a discount.

Academic level:

We'll send you the first draft for approval by at

Total price:

$0.00

Power up Your Academic Success with the
Team of Professionals. We’ve Got Your Back.

Power up Your Study Success with Experts We’ve Got Your Back.