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
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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%
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.
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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