Based on the values in the Table below, identify the present value of benefits for Year 5 if the rate of return is 0.14. Year 1 2 3 4 5 6 7 Benefits 25000 31200 38500 51000 60100 66000 72000 Multiplier 0.87 0.77 0.68 0.59 Present Value of 21750 24024 26180 30090 Benefits A. 52287 31252 C. 24040 D. 30360 B.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter10: Capital Budgeting: Decision Criteria And Real Option
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Based on the values in the Table below, identify the present value of benefits for Year 5 if the rate of return is 0.14.
Year
1
2
3
4
5
6
7
Benefits
25000
31200
38500
51000
60100
66000
72000
Multiplier
0.87
0.77
0.68
0.59
Present
Value of
21750
24024
26180
30090
Benefits
A.
52287
В.
31252
C.
24040
D.
30360
B.
Transcribed Image Text:Based on the values in the Table below, identify the present value of benefits for Year 5 if the rate of return is 0.14. Year 1 2 3 4 5 6 7 Benefits 25000 31200 38500 51000 60100 66000 72000 Multiplier 0.87 0.77 0.68 0.59 Present Value of 21750 24024 26180 30090 Benefits A. 52287 В. 31252 C. 24040 D. 30360 B.
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