What is the net present value of the proposed investment


Question: 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?

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Finance Basics: What is the net present value of the proposed investment
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