Haas Trucking Company Founded In 1985 Provides Safe And Dependable Freight Services Haas Has 150 000 To Invest In One O 1 (28.92 KiB) Viewed 31 times
Haas Trucking Company Founded In 1985 Provides Safe And Dependable Freight Services Haas Has 150 000 To Invest In One O 2 (25.6 KiB) Viewed 31 times
Haas Trucking company founded in 1985 provides safe and dependable freight services Haas has $150,000 to invest in one of the two projects listed below. Project A Project 8 Cost of equipment required $150,80 $ Working capital investment required $ $150,000 Annual cash inflows $ 24,000 $ 37,000 Salvage value of equipment in six years $ 8, see Life of the project 6 years $ 6 years The working capital needed for project will be released at the end of six years for investment elsewhere. The company's discount rate is 15% Click here to view Exhibit 128-1 and Exhibit 120.2. to determine the appropriate discount factor() using tables. Required: 1. Compute the net present value of Project A. (Enter negative value with a minus sign. Round your final answer to the nearest whole dollar amount.) 2. Compute the net present value of Project B. (Enter negative value with a minus sign. Round your final answer to the nearest whole dollar amount.) 3. Which investment alternative (if either would you recommend that the company accept?
Required: 1. Compute the net present value of Project A (Enter negative value with a minus sign. Round your final answer to the nearest whole dollar amount.) 2. Compute the net present value of Project B. (Enter negative value with a minus sign. Round your final answer to the nearest whole dollar amount.) 3. Which investment alternative (if either) would you recommend that the company accept? 1. Net present value project A 2. Net present value project B 3. Which investment alternative if either) would you recommend that the company accept? Project A Project B Neither
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