A project requires a $41,000 initial investment and is expected to generate end-of-period annual cash inflows as follows: Year 1 Year 2 $ 10,400 $ 10,200 Year 3 $ 14,400 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 - 10% A 2 0.8264 Multiple Choice 84157 Total $ 41,000 i=10% 8=3 0.7513
A project requires a $41,000 initial investment and is expected to generate end-of-period annual cash inflows as follows: Year 1 Year 2 $ 10,400 $ 10,200 Year 3 $ 14,400 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 - 10% A 2 0.8264 Multiple Choice 84157 Total $ 41,000 i=10% 8=3 0.7513
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A project requires a $41,000 initial investment and is expected to generate end-of-period annual cash inflows as follows:
Year 1
Year 3
Total
Year 2
$ 10,200
$ 16,400
$ 14,400
$ 41,000
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
- 10%
2
i-10%
n=1
0.9091 0.8264
Multiple Choice
O
O
O
$34357
$28.700
$6,843
10
(105
n=3
0.7513
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