A project requires a $44,000 initial investment and is expected to generate end-of-period annual cash inflows as follows: Year 1 Year 2 $ 20,000 $ 21,000 Assuming a discount rate of 12%, 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 = 12 % n = 1 0.8929 i = 12% n = 2 0.7972 Multiple Choice O $0 $4,835 $(13,257) $48,835 Year 3 $ 20,000 $(2,574) i = 12% n = 3 0.7118
A project requires a $44,000 initial investment and is expected to generate end-of-period annual cash inflows as follows: Year 1 Year 2 $ 20,000 $ 21,000 Assuming a discount rate of 12%, 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 = 12 % n = 1 0.8929 i = 12% n = 2 0.7972 Multiple Choice O $0 $4,835 $(13,257) $48,835 Year 3 $ 20,000 $(2,574) i = 12% n = 3 0.7118
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 3CMA
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![A project requires a $44,000 initial investment and is expected to generate end-of-period annual cash
inflows as follows:
Year 1
Year 2
$ 20,000 $ 21,000
Assuming a discount rate of 12%, 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 = 12 %
n = 1
0.8929
i = 12%
n = 2
0.7972
Multiple Choice
$0
$4,835
$(13,257)
$48,835
Year 3
$ 20,000
$(2,574)
1 = 12%
n = 3
0.7118](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa226cab2-a963-4e3f-ada4-b544106d80b3%2F60e2ea0e-69e8-4ce6-b68d-dd2d24e5e6de%2F1fuwti8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A project requires a $44,000 initial investment and is expected to generate end-of-period annual cash
inflows as follows:
Year 1
Year 2
$ 20,000 $ 21,000
Assuming a discount rate of 12%, 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 = 12 %
n = 1
0.8929
i = 12%
n = 2
0.7972
Multiple Choice
$0
$4,835
$(13,257)
$48,835
Year 3
$ 20,000
$(2,574)
1 = 12%
n = 3
0.7118
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