Blossom Company accumulates the following data concerning a proposed capital investment: cash cost $217,280, net annual cash flows $44,000, and present value factor of cash inflows for 10 years is 5.22 (rounded). (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45).) Determine the net present value, and indicate whether the investment should be made. Net present value 24

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
Section: Chapter Questions
Problem 1CMA: Foster Manufacturing is analyzing a capital investment project that is forecasted to produce the...
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Blossom Company accumulates the following data concerning a proposed capital investment: cash cost $217,280, net annual cash
flows $44,000, and present value factor of cash inflows for 10 years is 5.22 (rounded). (If the net present value is negative, use either a
negative sign preceding the number eg -45 or parentheses eg (45).)
Determine the net present value, and indicate whether the investment should be made.
Net present value
24
The investment
be made.
Transcribed Image Text:Blossom Company accumulates the following data concerning a proposed capital investment: cash cost $217,280, net annual cash flows $44,000, and present value factor of cash inflows for 10 years is 5.22 (rounded). (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45).) Determine the net present value, and indicate whether the investment should be made. Net present value 24 The investment be made.
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