Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.)
| Investment required in equipment |
$540,000 |
| Annual cash inflows |
$78,000 |
| Salvage value |
$0 |
| Life of the investment |
20 years |
| Discount rate |
10% |
Click here to view Exhibit 13B-2 to determine the appropriate discount factor(s) using tables. |
The net present value on this investment is closest to: (Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount.)