Garcia Company is considering a $371,000 investment with the following net cash flows. Garcia requires a 12% return on its investments. The present value of this investment is: Initial investment Year 1 Year 2 Year 3 Year 4: Year 5 Multiple Choice $508.822 $183701 Annual Net Cash Present Value of $1 Flows at 12% $ 131,000 91,000 151,000 261,000 81,000 1.0000 0.8929 8.7972 0.7118 0.6355 0.5674
Garcia Company is considering a $371,000 investment with the following net cash flows. Garcia requires a 12% return on its investments. The present value of this investment is: Initial investment Year 1 Year 2 Year 3 Year 4: Year 5 Multiple Choice $508.822 $183701 Annual Net Cash Present Value of $1 Flows at 12% $ 131,000 91,000 151,000 261,000 81,000 1.0000 0.8929 8.7972 0.7118 0.6355 0.5674
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
Section: Chapter Questions
Problem 3CMA
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