Ignore Income Taxes In This Problem Apnea Video Rental Store Is Considering The

.(Ignore income taxes in this problem.) Apnea Video Rental Store is considering the purchase of an almost new minivan to use as a vehicle to deliver and pick up video tapes for customers. The minivan will cost $18,000 and is expected to last 8 years but only if the engine is overhauled at a cost of $3,000 at the end of year 3. The minivan is expected to have a $1,000 salvage value at the end of 8 years. This delivery service is expected to generate net cash inflows of $6,000 per year in each of the 8 years. Apnea’s discount rate is 14%. What is the net present value of this investment opportunity? A) $(2,826) B) $(3,801) C) $7,185 D) $8,160 E) None of the above 42

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