Mattice Corporation Is Considering Investing $820,000 in a Project

question 315

Essay

Mattice Corporation is considering investing $820,000 in a project. The life of the project would be 6 years. The project would require additional working capital of $32,000, which would be released for use elsewhere at the end of the project. The annual net cash inflows would be $174,000. The salvage value of the assets used in the project would be $42,000. The company uses a discount rate of 13%. (Ignore income taxes.)Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided.Required:Compute the net present value of the project. (Negative amount should be indicated by a minus sign. Round your intermediate calculations and final answer to the nearest whole dollar amount.)

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Definitions:

Request Proposal

A document that outlines project requirements and specifications, soliciting proposals from vendors or contractors to complete the project.

Training Program

A structured plan designed to enhance the knowledge, skills, and competencies of employees for specific roles or tasks.

Diversity Training

Training designed to change employee attitudes about diversity and/or develop skills needed to work with a diverse workforce.

Minority Groups

Definition: Populations or communities that are smaller in number compared to the dominant group within a society, often facing differing treatment or discrimination.