Tomato Inc. has a Ketchup project that has a initial investment of $ 1,000,000, The estimated life of the project is 5 years. The market rate of return is 5% Year    Annual Profits 1    150,000 2    270,000 3    330,000 4    310,000 5    290,000 What is the present value of the 5 cash inflows of this project?

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Tomato Inc. has a Ketchup project that has a initial investment of $ 1,000,000, The estimated life of the project is 5 years. The market rate of return is 5%
Year    Annual Profits
1    150,000
2    270,000
3    330,000
4    310,000
5    290,000

What is the present value of the 5 cash inflows of this project?

 

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