Project A costs $4,700 and will generate annual after-tax net cash inflows of $1,800 for five years. What is the NPV using 12% as the discount rate? Round your present value factor to three decimal places and final answer to the nearest dollar. (Click here to see present value and future value tables)
Project A costs $4,700 and will generate annual after-tax net cash inflows of $1,800 for five years. What is the NPV using 12% as the discount rate? Round your present value factor to three decimal places and final answer to the nearest dollar. (Click here to see present value and future value tables)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:< Principles of Accounting, Vol... T ime Value of Money
E Table of contents
Search this book
E My highlights
B Print
Present Value of $1 Table
1
Factor =
(1 + i)"
Rate (i)
1%
2%
3%
5%
8%
10%
12%
15%
20%
1
0.990
0.980
0.971
0.952
0.926
0.909
0.893
0.870
0.833
0.980
0.961
0.943
0.907
0.857
0.826
0.797
0.756
0.694
3
0.971
0.942
0.915
0.864
0.794
0.751
0.712
0.658
0.579
4
0.961
0.924
0.888
0.823
0.735
0.683
0.636
0.572
0.482
0.952
0.906
0.863
0.784
0.681
0.621
0.567
0.497
0.402
0.942
0.888
0.837
0.746
0.630
0.564
0.507
0.432
0.335
7
0.933
0.871
0.813
0.711
0.583
0.513
0.452
0.376
0.279
8
0.924
0.853
0.789
0.677
0.540
0.467
0.404
0.327
0.233
9
0.914
0.837
0.766
0.645
0.500
0.424
0.361
0.284
0.194
10
0.905
0.820
0.744
0.614
0.463
0.386
0.322
0.247
0.162
11
0.896
0.804
0.722
0.585
0.429
0.350
0.287
0.215
0.135
12
0.888
0.788
0.701
0.557
0.397
0.319
0.257
0.187
0.112
13
0.879
0.773
0.681
0.530
0.368
0.290
0.229
0.163
0.093
14
0.861
0.758
0.661
0.505
0.340
0.263
0.205
0.141
0.078
15
0.861
0.743
0.642
0.481
0.315
0.239
0.183
0.123
0.065
16
0.853
0.728
0.623
0.458
0.292
0.218
0.163
0.107
0.054
17
0.844
0.714
0.605
0.436
0.270
0.198
0.146
0.093
0.045
18
0.836
0.700
0.587
0.416
0.250
0.180
0.130
0.081
0.038
(u) poļua
Transcribed Image Text:Project A costs $4,700 and will generate annual after-tax net cash inflows of $1,800 for five years. What is the NPV using 12% as the discount rate? Round your
present value factor to three decimal places and final answer to the nearest dollar.
(Click here to see present value and future value tables)
$
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