What is the net present value of proposed investment


Problem: The following data pertain to an investment that is being considered by the management of Sublex Company:

Discount rate 10%
Life of the project 5 years
Cost of the investment $56,865
Annual cost savings 15,000
Estimated salvage value 3,000

What is the net present value of the proposed investment? Should the project be accepted? Why or why not?

Solution Preview :

Prepared by a verified Expert
Finance Basics: What is the net present value of proposed investment
Reference No:- TGS01810393

Now Priced at $20 (50% Discount)

Recommended (91%)

Rated (4.3/5)