Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. parks corporation is considering an investment pro

Parks Corporation is considering an investment proposal in which a working capital investment of $10,000...

90.2K

Verified Solution

Question

Accounting

Parks Corporation is considering an investment proposal in which a working capital investment of $10,000 would be required. The investment would provide cash inflows of $2,000 per year for six years. The working capital would be released for use elsewhere when the project is completed. If the company's discount rate is 10%, the investment's net present value is closest to (Ignore income taxes.):

Select one:

a. $1,290

b. ($1,290)

c. $2,000

d. $4,350

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Solve the following initial value: y ''+ 4y = 2 cos 2t, y(0) = −2 and...

Advance Math
Q

eBook Problem 18-07 Refunding Analysis Mullet Technologies is considering whether or not to refund a $250 million, 12% coupon,...

Finance
Q

Consider a system of infinite pulleys and blocks as shown Every next block is twice...

Physics
Q

Given a x + y + z subject to the constraints x + y +...

Basic Math
Q

The logistic growth function describes the number of people in a particular community who believe...

Calculus
Q

please help with #4 Most...

Accounting
Q

Question 35 (1 point) The Carter Company's bonds mature in 20 years have a par...

Accounting
Q

During the current year, Nash Construction trades an old crane that has a book value...

Accounting
Q

After Enron, WorldCom, and other major corporate scandals that rocked America in the recent past,...

Accounting
Q

What is the major distinction between a static budget and a flexible budget? What are...

Accounting
Q

The following accounts are taken from the ledger of Crane Company at December 31, 2022...

Accounting
Q

Common Stockholders' Profitability Analysis A company reports the following: Net income $260,000...

Accounting