Calculate the net present value for fishing vessel and also


Survivor, Inc. is considering investing in two independent projects: a modified fishing vessel and a bear trap. The cash outlay for the fishing vessel is $45,000, and for the bear trap it is $35,000. Each piece of equipment has an estimated life of 5 years. The expected annual after-tax cash flow to be provided by the fishing vessel is $12,500 each of the 5 years, and for the bear trap it is $8,500 each year. The firm’s required rate of return is 8%.. Calculate the net present value for fishing vessel and also for the bear trap. calculate the Internal Rate of Return for both.

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Financial Management: Calculate the net present value for fishing vessel and also
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