Consider the cash flows from an investment project. Year Cash Flows -$28,500 25,500 27,980 32,660 40,230 Click the icon to view the interest factors for discrete compounding when / 10 % per year. (a) Compute the net present worth of the project at i= 10%. The present worth of the project is $ 69821. (Round to the nearest dollar.) 1234

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
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Consider the cash flows from an investment project.
Year
Cash Flows
0.
- $28,500
1
25,500
27,980
32,660
40,230
Click the icon to view the interest factors for discrete compounding when / 10% per year.
(a) Compute the net present worth of the project at i= 10%.
The present worth of the project is $ 69821. (Round to the nearest dollar.)
(b) Plot the present worth as a function of the interest rate (from 0% to 30%). Choose the correct graph below.
2 34
Transcribed Image Text:Consider the cash flows from an investment project. Year Cash Flows 0. - $28,500 1 25,500 27,980 32,660 40,230 Click the icon to view the interest factors for discrete compounding when / 10% per year. (a) Compute the net present worth of the project at i= 10%. The present worth of the project is $ 69821. (Round to the nearest dollar.) (b) Plot the present worth as a function of the interest rate (from 0% to 30%). Choose the correct graph below. 2 34
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