AmeriTextile Co

Short Answer

AmeriTextile Co. is considering opening a production and shipping facility in Dallas to keep up with demand for its pillows. The 105,000- square- foot facility will require an initial investment of $280,000, and an annual operating cost of $26,000. It will have a
$74,500 salvage value after 9 years. Calculate the net present worth of this investment if the company's minimum attractive rate of return is 5% per year.