Answered: Sloan Inc. recently invested in a…

Sloan Inc. recently invested in a project with a 3-year life span. The net present value was $9,000 and annual cash inflows were $21,000 for year 1; $24,000 for year 2; and $27,000 for year 3.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Sloan Inc. recently invested in a project with a 3-year life
span. The net present value was $9,000 and annual cash
inflows were $21,000 for year 1; $24,000 for year 2; and
$27,000 for year 3.
The initial investment for the project, assuming a 15%
required rate of return, was

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