Dickerson Co. is evaluating a project requiring a capital expenditure of $810,000. The project has an estimated life of four years and no salvage value. The estimated net income and net cash flow from the project are as follows:
The company's minimum desired rate of return is 12%. The present value of $1 at compound interest of 12% for 1, 2, 3, and 4 years is .893, .797, .712, and .636, respectively.
Required:
Determine the net present value.
Definitions:
Formal Education
Structured learning that takes place within academic institutions, leading to recognized qualifications.
Productive Workers
Productive workers are those employees who directly engage in the production of goods or the provision of services, contributing to the output of a business.
Psychic Costs
Non-monetary costs related to emotional stress or mental effort involved in undertaking an activity or making a decision.
Fire Protection Program
encompasses the policies, practices, and tools aimed at preventing, mitigating, and responding to fires.
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