Problem 8-25 Name:
Enter the appropriate numbers/formulas in the shaded (gray) cells, or select from the drop-down list.
An asterisk (*) will appear in the column to the right of an incorrect answer.
15
Present value of cash inflows: Percent
Annuity Present
Amount (1 – Tax Rate) Factor Value
Present value of the depreciation tax shield: 15
Percent
Yearly Annuity Present
The NPV of the capital investment proposal:
Initial investment (50,000)$
Present value of annual cash inflows 30,170
Present value of depreciation tax shield 13,409
The capital investment proposal is
unacceptable.
Instructor