Period/Rate 10 11 12 13 Knowledge Check 01 Clean Tel, Incorporated is considering investing in an 11-year project with annual cash inflows of $1,000,000. These cash inflows have an initial investment of $7,139,000. At what discount rate would this present value be the same as the initial investment? 6% -7% Present Value of Ordinary Annuity 7% 5% 6% 8% 9% 7.7217 7.3601 7.0236 6.7101 6.4177 7.8869 7.4987 7.1390 6.8052 8.3838 7.9427 7.5361 7.1607 8.8527 8.3577 7.9038 7.4869 8.3064 8.8633 9.3936 Ⓒ9% 8%
Period/Rate 10 11 12 13 Knowledge Check 01 Clean Tel, Incorporated is considering investing in an 11-year project with annual cash inflows of $1,000,000. These cash inflows have an initial investment of $7,139,000. At what discount rate would this present value be the same as the initial investment? 6% -7% Present Value of Ordinary Annuity 7% 5% 6% 8% 9% 7.7217 7.3601 7.0236 6.7101 6.4177 7.8869 7.4987 7.1390 6.8052 8.3838 7.9427 7.5361 7.1607 8.8527 8.3577 7.9038 7.4869 8.3064 8.8633 9.3936 Ⓒ9% 8%
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA3: Time Value Of Money
Section: Chapter Questions
Problem 16E
Related questions
Question
![Period/Rate
10
11
12
13
Knowledge Check 01
Clean Tel, Incorporated is considering investing in an 11-year project with annual cash inflows of $1,000,000. These cash inflows have
an initial investment of $7,139,000. At what discount rate would this present value be the same as the initial investment?
0000
6%
7%
Present Value of Ordinary Annuity
6%
7%
8%
5%
9%
7.7217 7.3601 7.0236 6.7101 6.4177
8.3064 7.8869 7.4987 7.1390 6.8052
8.8633 8.3838 7.9427 7.5361 7.1607
9.3936 8.8527 8.3577 7.9038 7.4869
9%
8%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1fa60c78-9fb4-4e0c-b7cf-c42e4b87eac4%2Feaae2211-51c8-4879-9f7f-d7260fcbe512%2Flry2g28_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Period/Rate
10
11
12
13
Knowledge Check 01
Clean Tel, Incorporated is considering investing in an 11-year project with annual cash inflows of $1,000,000. These cash inflows have
an initial investment of $7,139,000. At what discount rate would this present value be the same as the initial investment?
0000
6%
7%
Present Value of Ordinary Annuity
6%
7%
8%
5%
9%
7.7217 7.3601 7.0236 6.7101 6.4177
8.3064 7.8869 7.4987 7.1390 6.8052
8.8633 8.3838 7.9427 7.5361 7.1607
9.3936 8.8527 8.3577 7.9038 7.4869
9%
8%
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