0123 45 181 An investor is considering a business opportunity with the anticipated re- ceipts and disbursements shown in the following table. Calculate the net cash flow representing this investment, and then find the present worth of the net cash flow for an interest rate of 0% and 12%. Answer: $175,000; –$12,915 End of Year Disbursements Receipts $300,000 75,000 25,000 30,000 $ 0 20,000 60,000 135,000 180,000 210,000

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
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Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 9EB: If you invest $15,000 today, how much will you have in (for further instructions on future value in...
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181
An investor is considering a business opportunity with the anticipated re-
ceipts and disbursements shown in the following table. Calculate the net cash
flow representing this investment, and then find the present worth of the net
cash flow for an interest rate of 0% and 12%. Answer: $175,000; –$12,915
End of Year
Disbursements
Receipts
$300,000
75,000
25,000
30,000
$
20,000
60,000
1
135,000
180,000
210,000
4
Transcribed Image Text:181 An investor is considering a business opportunity with the anticipated re- ceipts and disbursements shown in the following table. Calculate the net cash flow representing this investment, and then find the present worth of the net cash flow for an interest rate of 0% and 12%. Answer: $175,000; –$12,915 End of Year Disbursements Receipts $300,000 75,000 25,000 30,000 $ 20,000 60,000 1 135,000 180,000 210,000 4
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