Southern Company is considering expanding its manufacturing facility to meet increasing customer demand. The investment...
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Accounting
Southern Company is considering expanding its manufacturing facility to meet increasing customer demand. The investment is $100,000 with a useful life of ten years with no salvage value at the end of ten years. The company expects the investment will result in 20,000 of positive cash flow over the life of the investment. Southern requires at 10% rate of return to make the investment.
The net present value of this investment is: A. $0 B. $100,000 C. $14,091 D. $22, 892
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