Cascade,Inc. ,has assembled the estimates shown below relating to a proposed new product.These estimates are based on a 5-year project life,at the end of which the new equipment would be sold,working capital would revert to other uses in the company,and the product would be discontinued.Cascade uses a discount rate of 18%. Required:
Compute the net present value of the new product.

Question

Cascade,Inc. ,has assembled the estimates shown below relating to a proposed new product.These estimates are based on a 5-year project life,at the end of which the new equipment would be sold,working capital would revert to other uses in the company,and the product would be discontinued.Cascade uses a discount rate of 18%.  Required:
Compute the net present value of the new product.

Quizplus · Accepted Answer

The Answer of Cascade,Inc. ,has assembled the estimates shown below relating to a proposed new product.These estimates are based on a 5-year project life,at the end of which the new equipment would be sold,working capital would revert to other uses in the company,and the product would be discontinued.Cascade uses a discount rate of 18%.  Required:
Compute the net present value of the new product.