An investment that costs $30,000 will produce annual cash flows of $10,000 for a period of 4 years. Given a desired rate of return of 8%, the benefit of the investment today is: a) $30,000. Ob) $33,121. c) $40,000. d) $25,000.

An investment that costs $30,000 will produce annual cash flows of $10,000 for a period of 4 years. Given a desired rate of return of 8%, the benefit of the investment today is: a) $30,000. Ob) $33,121. c) $40,000. d) $25,000.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 27P

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Question

An investment that costs $30,000 will produce annual cash flows of $10,000 for a
period of 4 years. Given a desired rate of return of 8%, the benefit of the investment
today is:
a) $30,000.
Ob) $33,121.
c) $40,000.
d) $25,000.

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