Huntsville Company has invested in a project that has an eight-year life. It is expected that the annual cash inflow from the project will be $20,200. Assuming that the project has an internal rate of return of 15%, how much was the initial investment in the project? (Ignore income taxes in this problem.) (Round your PV factor to 5 decimal places and final answer to nearest whole dollar amount.) Select one: a. $160,000 b. $90,644 c. $80,800 d. $64,648
Huntsville Company has invested in a project that has an eight-year life. It is expected that the annual cash inflow from the project will be $20,200. Assuming that the project has an internal rate of return of 15%, how much was the initial investment in the project? (Ignore income taxes in this problem.) (Round your PV factor to 5 decimal places and final answer to nearest whole dollar amount.) Select one: a. $160,000 b. $90,644 c. $80,800 d. $64,648
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
Godo
Transcribed Image Text:Huntsville Company has invested in a project that has an eight-year life. It is expected that the annual cash inflow from the project will be $20,200. Assuming that
the project has an internal rate of return of 15%, how much was the initial investment in the project? (Ignore income taxes in this problem.) (Round your PV factor
to 5 decimal places and final answer to nearest whole dollar amount.)
Select one:
a. $160,000
b. $90,644
c. $80,800
d. $64,648
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education