FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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A project requires a $41,000 initial investment and is expected to generate end-of-period annual cash inflows of $18,500 for each of three years.
Assuming a discount rate of 13%, what is the net present value of this investment? Selected present value factors for a single sum are shown in the table
below:
- 138
í = 138
n=2
1-13%
n=3
n
1
0.8850
0.7831
0.6931
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Transcribed Image Text:A project requires a $41,000 initial investment and is expected to generate end-of-period annual cash inflows of $18,500 for each of three years. Assuming a discount rate of 13%, what is the net present value of this investment? Selected present value factors for a single sum are shown in the table below: - 138 í = 138 n=2 1-13% n=3 n 1 0.8850 0.7831 0.6931
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