What is the net present value of the mechanical drying equipment investment opportunity (as of December 1985) assuming a 12% cost of capital for Paperco. Assume the rumored new tax proposal is not enacted and that the new drying equipment replaces the old equipment in December 1986.

NPV=0.893*Investment cost

Explanation:

Net Present Value, NPV = (Cash flows)/( 1+r)ⁿ

r=cost of capital = 12%

n= period= 1 year

Cash flow = initial investment/inflow

NPV=Cashflow/(1+0.12)¹

NPV=0.893*Investment cost

in november 1781, john hanson became the first president of the united states in congress assembled, under the articles of confederation. many people have argued that john hanson, and not george washington, was the first president of the united states, but this is not quite true.

explanation: