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Huntsville Company has invested in a project that has an eight-year life. It is expected that the annual cash inflow from the project will be $20,200. Assuming that the project has an internal rate of return of 15%, how much was the initial investment in the project? (Ignore income taxes in this problem.) (Round your PV factor to 5 decimal places and final answer to nearest whole dollar amount.) Select one: a. $160,000 b. $90,644 c. $80,800 d. $64,648

Huntsville Company has invested in a project that has an eight-year life. It is expected that the annual cash inflow from the project will be $20,200. Assuming that the project has an internal rate of return of 15%, how much was the initial investment in the project? (Ignore income taxes in this problem.) (Round your PV factor to 5 decimal places and final answer to nearest whole dollar amount.) Select one: a. $160,000 b. $90,644 c. $80,800 d. $64,648

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Huntsville Company has invested in a project that has an eight-year life. It is expected that the annual cash inflow from the project will be $20,200. Assuming that the project has an internal rate of return of 15%, how much was the initial investment in the project? (Ignore income taxes in this problem.) (Round your PV factor to 5 decimal places and final answer to nearest whole dollar amount.) Select one: a. $160,000 b. $90,644 c. $80,800 d. $64,648
Transcribed Image Text:Huntsville Company has invested in a project that has an eight-year life. It is expected that the annual cash inflow from the project will be $20,200. Assuming that the project has an internal rate of return of 15%, how much was the initial investment in the project? (Ignore income taxes in this problem.) (Round your PV factor to 5 decimal places and final answer to nearest whole dollar amount.) Select one: a. $160,000 b. $90,644 c. $80,800 d. $64,648
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