Garcia Company is considering a $371,000 investment with the following net cash flows. Garcia requires a 12% return on its investments. The present value of this investment is: Initial investment Year 1 Year 2 Year 3 Year 4: Year 5 Multiple Choice $508.822 $183701 Annual Net Cash Present Value of $1 Flows at 12% $ 131,000 91,000 151,000 261,000 81,000 1.0000 0.8929 8.7972 0.7118 0.6355 0.5674
Garcia Company is considering a $371,000 investment with the following net cash flows. Garcia requires a 12% return on its investments. The present value of this investment is: Initial investment Year 1 Year 2 Year 3 Year 4: Year 5 Multiple Choice $508.822 $183701 Annual Net Cash Present Value of $1 Flows at 12% $ 131,000 91,000 151,000 261,000 81,000 1.0000 0.8929 8.7972 0.7118 0.6355 0.5674
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
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Hh2.
Transcribed Image Text:Garcia Company is considering a $371,000 investment with the following net cash flows. Garcia requires a 12% return on its investments. The
present value of this investment is:
Mc
Initial investment
Year 1
Year 2
Year 3
Year 4:
Year 5
Multiple Choice
$508.822
$183781
Annual Net Cash Present Value of $1
Flows
at 12%
$ 131,000
91,000
151,000
261,000
81,000
< Prev
1.0000
0.8929.
8.7972
0.7118
0.6355
0.5674
10 of 10
Ned
Transcribed Image Text:$508,822.
$183,781.
$137,822.
$254,792.
$303,687
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