Which of the following amounts is closest to the net present value of a project that contributes $10,000 at the end of the first year and $5,000 at the end of the second year. The initial cost is $8,000 and the appropriate interest rate is 10%. $5,223 $21,223 $7,000 $5,951

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 4BE: Internal rate of return A project is estimated to cost 463,565 and provide annual net cash flows of...
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Which of the following amounts is closest to the net
present value of a project that contributes $10,000
at the end of the first year and $5,000 at the end of
the second year. The initial cost is $8,000 and the
appropriate interest rate is 10%.
$5,223
$21,223
$7,000
$5,951
Transcribed Image Text:Which of the following amounts is closest to the net present value of a project that contributes $10,000 at the end of the first year and $5,000 at the end of the second year. The initial cost is $8,000 and the appropriate interest rate is 10%. $5,223 $21,223 $7,000 $5,951
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