Capstone Investments is considering a project that will produce cash inflows of $11,000 at the end of Year 1, $24,000 in Year 2, and $36,000 in Year 3. What is the present value of these cash inflows at a discount rate of 12 percent? A) $54,578.17. B) $63,494.54. C) $46,564.28. D) $54,868.15. E) $41,997.60.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 2PA: Jasmine Manufacturing is considering a project that will require an initial investment of $52,000...
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Capstone Investments is considering a project that will produce cash
inflows of $11,000 at the end of Year 1, $24,000 in Year 2, and $36,000 in
Year 3. What is the present value of these cash inflows at a discount rate
of 12 percent?
A) $54,578.17.
B) $63,494.54.
C) $46,564.28.
D) $54,868.15.
E) $41,997.60.
Transcribed Image Text:Capstone Investments is considering a project that will produce cash inflows of $11,000 at the end of Year 1, $24,000 in Year 2, and $36,000 in Year 3. What is the present value of these cash inflows at a discount rate of 12 percent? A) $54,578.17. B) $63,494.54. C) $46,564.28. D) $54,868.15. E) $41,997.60.
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