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Find and calculate the net present value of the investment

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Reference no: EM132521944

Seventeen Seconds, Inc. is considering a long-term investment. The investment will require an investment of $40,000. It will have a useful life of 2 years, and no salvage (i.e., ending) value.

  1. Annual cash savings from the investment are $24,000.
  2. Assume that cash flows other than the initial investment occur at the end of the year, and that the cost of capital (i.e., discount rate) is 10%.

Question 1: Calculate the net present value of the investment (rounded to the nearest dollar).

Reference no: EM132521944

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