Lisa is pondering the construction and operation of a home-based cattery. She expects it will cost $25,000 to construct and will have a lifespan of four years before it collapses due to faulty construction and ammonia rot. Cash flows during those four glorious years are estimated as follows:
If the interest rate is 5%, what is the present value of the cattery project?
A) 8,522
B) 8,823
C) 9,124
D) 9,625

Question

Lisa is pondering the construction and operation of a home-based cattery. She expects it will cost $25,000 to construct and will have a lifespan of four years before it collapses due to faulty construction and ammonia rot. Cash flows during those four glorious years are estimated as follows: 
If the interest rate is 5%, what is the present value of the cattery project?
A) 8,522 
B) 8,823 
C) 9,124 
D) 9,625

Quizplus · Accepted Answer

The Answer of Lisa is pondering the construction and operation of a home-based cattery. She expects it will cost $25,000 to construct and will have a lifespan of four years before it collapses due to faulty construction and ammonia rot. Cash flows during those four glorious years are estimated as follows: 
If the interest rate is 5%, what is the present value of the cattery project?
A) 8,522 
B) 8,823 
C) 9,124 
D) 9,625

Lisa Is Pondering the Construction and Operation of a Home-Based