Truskowski Corporation has provided the following information concerning a capital budgeting project: The company uses straight-line depreciation on all equipment; the annual depreciation expense will be $60,000. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting.
Use Exhibit 7B-1 to determine the appropriate discount factor(s) using table.
The net present value of the project is closest to:
A) $280,000
B) $386,620
C) $235,840
D) $146,620

Question

Truskowski Corporation has provided the following information concerning a capital budgeting project:  The company uses straight-line depreciation on all equipment; the annual depreciation expense will be $60,000. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting.
Use Exhibit 7B-1 to determine the appropriate discount factor(s) using table.
The net present value of the project is closest to:
A) $280,000 
B) $386,620 
C) $235,840 
D) $146,620

Quizplus · Accepted Answer

11eacbfc_c80f_d870_8ffe_b3792dcd3343_TB7552_00

Truskowski Corporation Has Provided the Following Information Concerning a Capital