Abc co is considering the following investment cost of


Question - ABC Co. is considering the following investment:

Discount rate 10%

Life of project 5 years

Cost of investment $56,865

Annual savings $15,000

Estimated salvage value $3,000

a. What is the NPV of the proposal?

b. Should the project be accepted? Why?

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Accounting Basics: Abc co is considering the following investment cost of
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