A project requires a $28,000 initial investment and is expected to generate end-of-period annual cash inflows as follows: Year 1 Year 2 $ 12,000 $ 13,000 Assuming a discount rate of 10%, what is the net present value (rounded to the nearest whole dollar) of this investment? Selected present value factors for a single sum are shown in the table below. i = 10% n = 1 0.9091 i = 10% n = 2 0.8264 Multiple Choice $0 Year 3 $ 12,000 $2,668 i = 10% n = 3 0.7513
A project requires a $28,000 initial investment and is expected to generate end-of-period annual cash inflows as follows: Year 1 Year 2 $ 12,000 $ 13,000 Assuming a discount rate of 10%, what is the net present value (rounded to the nearest whole dollar) of this investment? Selected present value factors for a single sum are shown in the table below. i = 10% n = 1 0.9091 i = 10% n = 2 0.8264 Multiple Choice $0 Year 3 $ 12,000 $2,668 i = 10% n = 3 0.7513
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 28P
Related questions
Question
![A project requires a $28,000 initial investment and is expected to generate end-of-period annual cash inflows as follows:
Year 1
Year 2
$ 12,000 $ 13,000
Assuming a discount rate of 10%, what is the net present value (rounded to the nearest whole dollar) of this investment? Selected present value
factors for a single sum are shown in the table below.
i = 10%
n = 1
0.9091
Multiple Choice
O
i = 10%
n = 2
0.8264
O
$0
Year 3
$ 12,000
$2,668
i = 10%
n = 3
0.7513
4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F97caea6a-1a30-40bd-b82c-c0278107a519%2F61f8c1a7-dfee-4296-84df-d21b197d6372%2Fxs1lwhm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A project requires a $28,000 initial investment and is expected to generate end-of-period annual cash inflows as follows:
Year 1
Year 2
$ 12,000 $ 13,000
Assuming a discount rate of 10%, what is the net present value (rounded to the nearest whole dollar) of this investment? Selected present value
factors for a single sum are shown in the table below.
i = 10%
n = 1
0.9091
Multiple Choice
O
i = 10%
n = 2
0.8264
O
$0
Year 3
$ 12,000
$2,668
i = 10%
n = 3
0.7513
4
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