Blossom Company accumulates the following data concerning a proposed capital investment: cash cost $204,900, net annual cash flows $35,000, and present value factor of cash inflows for 10 years is 6.14 (rounded). (If the net present value is negative, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Determine the net present value, and indicate whether the investment should be made.
Net present value: $enter the net present value in dollars
The investment: select an option
- should
- should not be made.