Please determine the present value of the project for a given cash flow indicated below using the present value method and find the correct answer given below. Economic life :4 years Initial investment :150,000 TL Annual saving for each year :20,000 Salvage value :Zero Discount ratio :10%
Please determine the present value of the project for a given cash flow indicated below using the present value method and find the correct answer given below. Economic life :4 years Initial investment :150,000 TL Annual saving for each year :20,000 Salvage value :Zero Discount ratio :10%
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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Please determine the
![Please determine the present value of the project for a given cash flow indicated below using the present value method and find the correct answer given below. Economic life :4 years
Initial investment :150,000 TL Annual saving for each year :20,000 Salvage value :Zero Discount ratio :10%
Select one:
O A. The present value of the project is 230,000 TL.
O B. The present value of the project is 63397.31 TL.
O C. None of them are correct.
O D. The present value of the project is 80,000 TL.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F24c3a449-27ec-4c98-be31-ddac6c2dc832%2F6d0eae75-4a9b-4e2e-948a-742e7d722eb7%2Feaa08i9_processed.png&w=3840&q=75)
Transcribed Image Text:Please determine the present value of the project for a given cash flow indicated below using the present value method and find the correct answer given below. Economic life :4 years
Initial investment :150,000 TL Annual saving for each year :20,000 Salvage value :Zero Discount ratio :10%
Select one:
O A. The present value of the project is 230,000 TL.
O B. The present value of the project is 63397.31 TL.
O C. None of them are correct.
O D. The present value of the project is 80,000 TL.
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