A project that will cost $120,000 is estimated to generate cash flows of $25,000 per year for eight years. What is the net present value of the project, assuming a 10% required rate of return? (Use the present value tables in this chapter.) A. $11,675 B. $13,375 C. $75,000 D. $95,000 Q
A project that will cost $120,000 is estimated to generate cash flows of $25,000 per year for eight years. What is the net present value of the project, assuming a 10% required rate of return? (Use the present value tables in this chapter.) A. $11,675 B. $13,375 C. $75,000 D. $95,000 Q
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 1P: A project has an initial cost of 40,000, expected net cash inflows of 9,000 per year for 7 years,...
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A project that will cost $120,000 is estimated to generate cash flows of $25,000 per year for eight years. What is the net present value of the project, assuming a 10% required rate of return? (Use the present value tables in this chapter.)
A. $11,675
B. $13,375
C. $75,000
D. $95,000
Q
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