Assuming that your firm requires 8% returns on such investments, what is the net present value of the project? $59.29 O $139.05 -$338.23 O $313.17
Assuming that your firm requires 8% returns on such investments, what is the net present value of the project? $59.29 O $139.05 -$338.23 O $313.17
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
Related questions
Question
![Your firm is considering investing in a project that will require an initial outlay of $10,000. You expect the project to have an operating life of four years. You expect it to generate the following cash flows: (1) $3,000
in the first year, (2) $4,000 in the second year, (3) $2,500 in the third year, and (4) $2,000 in the final year.
Assuming that your firm requires 8% returns on such investments, what is the net present value of the project?
O $59.29
O $139.05
-$338.23
-$313.17](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc790c56e-6040-4fac-977f-3f8f6b1c52b4%2F14539b36-691d-42a5-98af-304053e8a071%2Fol0axy_processed.png&w=3840&q=75)
Transcribed Image Text:Your firm is considering investing in a project that will require an initial outlay of $10,000. You expect the project to have an operating life of four years. You expect it to generate the following cash flows: (1) $3,000
in the first year, (2) $4,000 in the second year, (3) $2,500 in the third year, and (4) $2,000 in the final year.
Assuming that your firm requires 8% returns on such investments, what is the net present value of the project?
O $59.29
O $139.05
-$338.23
-$313.17
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