Burba Inc. is considering investing in a project that would require an initial investment of $200,000. The life of the project would be 5 years. The annual net cash inflows from the project would be $60,000. The salvage value of the assets at the end of the project would be $30,000. The company uses a discount rate of 17%.
Required:
Compute the net present value of the project.

Question

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The Answer of Burba Inc. is considering investing in a project that would require an initial investment of $200,000. The life of the project would be 5 years. The annual net cash inflows from the project would be $60,000. The salvage value of the assets at the end of the project would be $30,000. The company uses a discount rate of 17%.
Required:
Compute the net present value of the project.

Burba Inc Is Considering Investing in a Project That Would Require