A project requires a $33,000 initial investment and is expected to generate end-of-period annual cash inflows as follows Year 1 Year 2 $ 15,000 $ 16,000 Assuming a discount rate of 14%, what is the net present value (rounded to the nearest whole dollar) of this investment? Selected prese sum are shown in the table below. i = 14% n=1 88777 Year 3 $ 15,000 = 14% n=2 = 14% n=3
A project requires a $33,000 initial investment and is expected to generate end-of-period annual cash inflows as follows Year 1 Year 2 $ 15,000 $ 16,000 Assuming a discount rate of 14%, what is the net present value (rounded to the nearest whole dollar) of this investment? Selected prese sum are shown in the table below. i = 14% n=1 88777 Year 3 $ 15,000 = 14% n=2 = 14% n=3
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
Problem 1PS
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![A project requires a $33,000 initial investment and is expected to generate end-of-period annual cash inflows as follows
Year 1
Year 2
$ 15,000 $ 16,000
i = 14%
n=1
0.8772
{ = 14%
n = 2
0.7695
Year 3
$ 15,000
Assuming a discount rate of 14%, 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.
Multiple Choice
Help
{= 14%
n=3
0.6750
Save & Exit
Subr](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2f473a7e-de20-4b61-873d-00a4aa00920d%2Fab3956ba-63d0-4a44-ae3f-1ae91d9f0100%2Fh9jqysj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A project requires a $33,000 initial investment and is expected to generate end-of-period annual cash inflows as follows
Year 1
Year 2
$ 15,000 $ 16,000
i = 14%
n=1
0.8772
{ = 14%
n = 2
0.7695
Year 3
$ 15,000
Assuming a discount rate of 14%, 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.
Multiple Choice
Help
{= 14%
n=3
0.6750
Save & Exit
Subr
![Multiple Choice
O
O
O
O
$0
$2,595
$(11,375)
$35,595
$(3,158)
Saved](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2f473a7e-de20-4b61-873d-00a4aa00920d%2Fab3956ba-63d0-4a44-ae3f-1ae91d9f0100%2F84bh7s8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Multiple Choice
O
O
O
O
$0
$2,595
$(11,375)
$35,595
$(3,158)
Saved
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