linalopez04
Apr 8, 2007, 04:18 PM
Wiley Co. is considering an investment of $200,000 in a project with a 5 year economic life. After tax net income from the project has been calculated at $22,00 per year including a deduction for depreciation of $30,000 per year. The residual or salvage value at the end of 5 years is $50,000. Wiley Co.'s required rate of return is 10%.
1.The present value of the annual cash inflows for the project is?
2.The present value of the residual value is?
1.The present value of the annual cash inflows for the project is?
2.The present value of the residual value is?