A project requires $10 000 as initial investment and will earn a revenue of $2 000 per year over the next seven years. The interest rate is 5.0% per year. What is the present worth of the project's costs?
A)$1 573
B)$2 000
C)$8 681
D)$10 000
E)$11 573

Question

Quizplus · Accepted Answer

The present worth of the project's costs is simply the initial investment, which is $10,000.

A Project Requires $10 000 as Initial Investment and Will