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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 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

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 1P: A project has an initial cost of 40,000, expected net cash inflows of 9,000 per year for 7 years,...
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SO 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
Transcribed Image Text:SO 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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