Lisa is pondering the construction and operation of a home-based cattery. She expects it will cost $15,000 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) 2,756
B) 3,124
C) 2,983
D) 3,277

Question

Lisa is pondering the construction and operation of a home-based cattery. She expects it will cost $15,000 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) 2,756 
B) 3,124 
C) 2,983 
D) 3,277

Quizplus · Accepted Answer

The Answer of Lisa is pondering the construction and operation of a home-based cattery. She expects it will cost $15,000 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) 2,756 
B) 3,124 
C) 2,983 
D) 3,277

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