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 Reference: 1002\text { Reference: } 10 - 02 Oriental Company Has Gathered the Following Data on a Proposed

Question 39

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 Reference: 1002\text { Reference: } 10 - 02 Oriental Company has gathered the following data on a proposed investment project:  Investment in depreciable equipment $200,000 Annual net cash flows $50,000 Life of the equipment 10 years  Salvage value $20 Discount rate 10%\begin{array} { | l | l | } \hline \text { Investment in depreciable equipment } & \$ 200,000 \\\hline \text { Annual net cash flows } & \$ 50,000 \\\hline \text { Life of the equipment } & 10 \text { years } \\\hline \text { Salvage value } & \$ 20 \\\hline \text { Discount rate } & 10 \% \\\hline\end{array} The company uses straight-line depreciation on all equipment.
-The net present value of this investment would be?


A) $200,000.
B) $77,200.
C) $107,250.
D) ($14,350) .

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