nefertiri64
nefertiri64
06.03.2020 • 
Business

A manager is considering the following investment: Estimated capital investment $270,000 Estimated useful life 3 years Estimated disposal value in 3 years $10,000 Estimated annual savings in cash operating costs $150,000 Minimum desired rate of return 12% Present value of ordinary annuity, 3 periods at 12% 2.4018 Present value of one, 3 periods at 12% 0.7118 Assume straight-line depreciation is used. Ignore income taxes. The net present value of the investment is . Group of answer choices $97,388 $50,310 $57,428 $90,270

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