At the end of 4 years the generator will have a salvage


Kamili Company is planning to buy a wind-powered electricity generator at a cost of $300,000. Because the generator is environmentally friendly, the state government will give Kamili a cash incentive payment of $50,000 on the day the generator is purchased. In addition, the generator will create net cash inflows at the end of each year for the next 4 years of $75,000. At the end of 4 years, the generator will have a salvage value of $40,000. Kamilis discount rate is 11%. Compute the net present value of the generator

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Business Management: At the end of 4 years the generator will have a salvage
Reference No:- TGS02581166

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