SublexCompany, net present value of the proposed investment
The following data pertain to an investment that is being considered by the management of SublexCompany:
– Discount rate: 10%
– Life of the project: 5 years
– Cost of the investment: $56,865
– Annual cost savings: 15,000
– Estimated salvage value: 3,000
What is the net present value of the proposed investment?