Question 4: A project is expected to generate cash flows of $3,000, $4,000, and $5,000 at the end of each of the next three years. If the discount rate is 12%, what is the present value of these cash flows?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 23E: Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The...
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Question 4:
A project is expected to generate cash flows of $3,000, $4,000, and $5,000 at the
end of each of the next three years. If the discount rate is 12%, what is the present
value of these cash flows?
Transcribed Image Text:Question 4: A project is expected to generate cash flows of $3,000, $4,000, and $5,000 at the end of each of the next three years. If the discount rate is 12%, what is the present value of these cash flows?
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