Andy’s Fishing Charters is considering the purchase of a new boat costing $80 000 the boat is expected to

Question

Andy’s Fishing Charters is considering the purchase of a new boat costing $80,000. the boat is expected to

increase profits by $12,000 per year for each of the next 8 years. After 4 years, the boat will require maintain of $6,000. After the 8 years, the boat will be sold for $32,000.

Calculate the NPV of the boat using a cost of capital of 12%. fund your answer to the nearest dollar.

Finance