Keuka Corporation is considering a project that costs $1 million and will produce benefits for 5 years. The first year cash inflow can be rather accu estimated at $240,000, measured in today's dollars. If the actual first-through fifth-year cash flows are assumed to be the same size ($240,000), what would the NPV of the investment be if the appropriate discount rate is 15% ? Round to the nearest whole number. If the answer is negative, put your answer in parentheses. NPV = S

Financial And Managerial Accounting
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ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
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Keuka Corporation is considering a project that costs $1 million and will produce benefits for 5 years. The first year cash inflow can be rather accurately
estimated at $240,000, measured in today's dollars. If the actual first-through fifth-year cash flows are assumed to be the same size ($240,000), what
would the NPV of the investment be if the appropriate discount rate is 15% ? Round to the nearest whole number. If the answer is negative, put your
answer in parentheses.
NPV = S
Transcribed Image Text:Keuka Corporation is considering a project that costs $1 million and will produce benefits for 5 years. The first year cash inflow can be rather accurately estimated at $240,000, measured in today's dollars. If the actual first-through fifth-year cash flows are assumed to be the same size ($240,000), what would the NPV of the investment be if the appropriate discount rate is 15% ? Round to the nearest whole number. If the answer is negative, put your answer in parentheses. NPV = S
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