A project requires a $38,000 initial investment and is expected to generate end-of-period annual cash inflows of $17,000 for each of three years. Assuming a discount rate of 11%, what is the net present value of this investment? Selected present value factors for a single sum are shown in the table below: i = 119 n=1 0.9009 i = 118 n=2 0.8116 Multiple Choice: $0 $7,070 $(11,424) i 118 л - 3 0.7312 < Prev 30 of 37 Next >
A project requires a $38,000 initial investment and is expected to generate end-of-period annual cash inflows of $17,000 for each of three years. Assuming a discount rate of 11%, what is the net present value of this investment? Selected present value factors for a single sum are shown in the table below: i = 119 n=1 0.9009 i = 118 n=2 0.8116 Multiple Choice: $0 $7,070 $(11,424) i 118 л - 3 0.7312 < Prev 30 of 37 Next >
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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