Inland Corporation, which operates an amusement park, is considering a capital investment in a new...
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Inland Corporation, which operates an amusement park, is considering a capital investment in a new ride. The ride would cost $130,000 and have an estimated useful life of 5 years. The park will sell it for $60,200 at that time. (Amusement parks need to rotate rides to keep people interested.) The ride will be expected to increase net annual cash flows by $24,200. The company's borrowing rate is 8%. Its cost of capital is 10%. Click here to view the factor table. Calculate the net present value of this project to the company
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