Required information [The following information applies to the questions displayed below.] Falcon Crest...
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[The following information applies to the questions displayed below.] Falcon Crest Aces (FCA), Inc., is considering the purchase of a small plane to use in its wing-walking demonstrations and aerial tour business. Various information about the proposed investment follows:
Initial investment
$
270,000
Useful life
$
10
years
Salvage value
25,000
Annual net income generated
$
6,000
FCA's cost of capital
8
%
Assume straight line depreciation method is used.
4. Help FCA evaluate this project by calculating each of the following: Recalculate FCA's NPV assuming the cost of capital is 3 percent. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Round your final answer to the nearest whole dollar amount.)
Net Present Value ______________
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