Solution-Compute the net present value for acme company

Compute the net present value for acme company

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Reference no: EM132586261

Sean Laarner paid $18,000 for 900 common shares of Acme Company on January 2, four years ago. Laarner received an $0.80 per share dividend on the shares at the end of each year for four years. At the end of four years, he sold the shares for $22,500. Laarner's goal is to earn a minimum return of 12% on all of his investments. (Ignore income taxes.)

Required:

Question 1. Compute the net present value. (Hint: Use Microsoft Excel to calculate the discount factor(s).) (Do not round intermediate calculations and round your final answer to the nearest dollar amount. Negative amount should be indicated by a minus sign.)

Reference no: EM132586261

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Compute the net present value for acme company

Reference no: EM132586261

Reference no: EM132586261

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