Computing the net present value of the project


Burba Inc. is considering investing in a project that would require an initial investment of $200,000. The life of the project would be 8 years. The annual net cash inflows from the project would be $60,000. The salvage value of the assets at the end of the project would be $30,000. The company uses a discount rate of 17%.

Required:

Compute the net present value of the project.

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Finance Basics: Computing the net present value of the project
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