You are considering a capital project that requires an initial investment of $ 40,000 , has predicted cash inflows of $15,000 per year for four years , and a salvage value o $ 5,000 . Using the tables above , calculate the project's net present value at a discount rate of 12 percent . negative $ 9,630 $5,555 $20,740 $ 8,735 $2,375
You are considering a capital project that requires an initial investment of $ 40,000 , has predicted cash inflows of $15,000 per year for four years , and a salvage value o $ 5,000 . Using the tables above , calculate the project's net present value at a discount rate of 12 percent . negative $ 9,630 $5,555 $20,740 $ 8,735 $2,375
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
Section: Chapter Questions
Problem 1PS
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You are considering a capital project that requires an initial investment of $ 40,000 , has predicted
negative $ 9,630
$5,555
$20,740
$ 8,735
$2,375
![Below is a table for the present value of $1:
Year
6%
10%
12%
.943
.909
.893
.890
.826
.797
.840
.751
.712
.792
.683
.636
.747
621
567
123
4
5
Below is a table for the present value of an annuity of $1:
Year
6%
10%
12%
1
.893
2
1.690
3
2.402
3.037
3.605
45
943
1.833
2.673
3.465
4.212
.909
1.736
2.487
3.170
3.791](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdc90700b-a68e-43aa-99cb-ae3777720bc1%2F49c4bc80-c9f1-457a-aa7b-00b4f2bd3f9c%2Fz4zdeud_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Below is a table for the present value of $1:
Year
6%
10%
12%
.943
.909
.893
.890
.826
.797
.840
.751
.712
.792
.683
.636
.747
621
567
123
4
5
Below is a table for the present value of an annuity of $1:
Year
6%
10%
12%
1
.893
2
1.690
3
2.402
3.037
3.605
45
943
1.833
2.673
3.465
4.212
.909
1.736
2.487
3.170
3.791
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