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.
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.
The net present value of the project is closest to:
A) $280,000 
B) $386,620 
C) $235,840 
D) $146,620

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11ea7761_15d0_a6d2_81a5_cf6438b4baf1_TB2580_00

Truskowski Corporation Has Provided the Following Information Concerning a Capital