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A capital budgeting project requires a cash investment of $1,600,000. The required rate of return is 12% and the investment will yield annual cash inflows over its useful life of four years. What is the annual cash inflow associated with this investment if the net present value of the investment is zero? (Note: There may be rounding error depending on the discount factor you use. Choose the answer closest to the one you calculate.) $378,966 $526,836 $549,696 $591,466 $609,649

A capital budgeting project requires a cash investment of $1,600,000. The required rate of return is 12% and the investment will yield annual cash inflows over its useful life of four years. What is the annual cash inflow associated with this investment if the net present value of the investment is zero? (Note: There may be rounding error depending on the discount factor you use. Choose the answer closest to the one you calculate.) $378,966 $526,836 $549,696 $591,466 $609,649

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A capital budgeting project requires a cash investment of $1,600,000. The required rate of return is 12% and the investment will yield annual cash inflows over its useful life of four years. What is the annual cash inflow associated with this investment if the net present value of the investment is zero? (Note: There may be rounding error depending on the discount factor you use. Choose the answer closest to the one you calculate.) $378,966 $526,836 $549,696 O $591,466 O $609,649
Transcribed Image Text:A capital budgeting project requires a cash investment of $1,600,000. The required rate of return is 12% and the investment will yield annual cash inflows over its useful life of four years. What is the annual cash inflow associated with this investment if the net present value of the investment is zero? (Note: There may be rounding error depending on the discount factor you use. Choose the answer closest to the one you calculate.) $378,966 $526,836 $549,696 O $591,466 O $609,649
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