17. Huntsville Company has invested in a project that has an eight-year life. It is expected that the annual cash inflow from the project will be $20,200. Assuming that the project has an internal rate of return of 15%, how much was the initial investment in the project? (Ignore income taxes in this problem.) (Round your PV factor to 5 decimal places and final answer to nearest whole dollar amount.) Select one: a. $90,644 b. $64,648 c. $160,000 d. $80,800
17. Huntsville Company has invested in a project that has an eight-year life. It is expected that the annual cash inflow from the project will be $20,200. Assuming that the project has an internal rate of return of 15%, how much was the initial investment in the project? (Ignore income taxes in this problem.) (Round your PV factor to 5 decimal places and final answer to nearest whole dollar amount.) Select one: a. $90,644 b. $64,648 c. $160,000 d. $80,800
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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17.
Huntsville Company has invested in a project that has an eight-year life. It is expected that the annual cash inflow from the project will be $20,200. Assuming that the project has an internal rate of return of 15%, how much was the initial investment in the project? (Ignore income taxes in this problem.) (Round your PV factor to 5 decimal places and final answer to nearest whole dollar amount.)
Select one:
a. $90,644
b. $64,648
c. $160,000
d. $80,800
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