The salvage value of the assets used in the project


Dunay Corporation is considering investing $850,000 in a project. The life of the project would be 6 years. The project would require additional working capital of $35,000, which would be released for use elsewhere at the end of the project. The annual net cash inflows would be $180,000. The salvage value of the assets used in the project would be $45,000. The company uses a discount rate of 13%. (Ignore income taxes.) Click here to view Exhibit 13B-1 and Exhibit 13B-2 to determine the appropriate discount factor(s) using tables. Required: Compute the net present value of the project. (Negative amount should be indicated by a minus sign. Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount. Omit the "$" sign in your response.)

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Accounting Basics: The salvage value of the assets used in the project
Reference No:- TGS0680402

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