ar 6% 10% 12% 0.943 0.909 0.893 0.890 0.826 0.797 0.840 0.751 0.712 0.792 0.683 0.636 0.747 0.621 0.567 ving is a table for the present value of an annuity of $1 at compound interest: ar 6% 10% 12% 0.943 0.909 0.893 1.833 1.736 1.690 2.673 2.487 2.402 3.037 3.465 4.212 3.170 3.791 3.605 the tables provided, if an investment is made now for $19,800 that will generate a cash inflow of $6,600 a year for the next 4 years, the net present value (rounded to the nearest dollar) of the investment, ass is $6.600 820.022

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Following is a table for the present value of $1 at compound interest:
Year
6%
10%
12%
1
0.943
0.909
0.893
2
0.890
0.826
0.797
3
0.840
0.751
0.712
4
0.792
0.683
0.636
5
0.747
0.621
0.567
Following is a table for the present value of an annuity of $1 at compound interest:
Year 6%
10%
1
0.943
0.909
12%
0.893
2
1.833
1.736
1.690
3
2.673
2.487
2.402
4
3.465
3.170
5
4.212
3.791
3.037
3.605
Using the tables provided, if an investment is made now for $19,800 that will generate a cash inflow of $6,600 a year for the next 4 years, the net present value (rounded to the nearest dollar) of the investment, assuming an earnings rate of
10%, is
O a $6.600
Ob. $20,922
c. $1.122
Od. $19,800
Transcribed Image Text:Following is a table for the present value of $1 at compound interest: Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 1 0.943 0.909 12% 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 5 4.212 3.791 3.037 3.605 Using the tables provided, if an investment is made now for $19,800 that will generate a cash inflow of $6,600 a year for the next 4 years, the net present value (rounded to the nearest dollar) of the investment, assuming an earnings rate of 10%, is O a $6.600 Ob. $20,922 c. $1.122 Od. $19,800
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