Niwot Inc.is considering an investment that will generate $600,000 in cash inflows per year for 7 years and has $360,000 of cash outflows for the same period (before income taxes) .The cost of the asset is $420,000 and it will be depreciated using straight-line depreciation over the 7 year life.The asset has no salvage value.Niwot's tax rate is 30%.The cost of capital is 9%.
What is the net present value of this investment (rounded to the nearest dollar) ?
Definitions:
White Matter
A component of the brain and spinal cord made up of myelinated axons, which facilitates communication between different brain regions.
Identical Twins
Siblings born from the splitting of a single fertilized egg, sharing the same genetic material and often very similar in appearance.
Crystallized Intelligence
Our accumulated knowledge and verbal skills; tends to increase with age.
Abstract Reasoning
The ability to analyze information, detect patterns and relationships, and solve problems on a complex, conceptual level.
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