A given project requires a $28,500 investment and is expected to generate end-of-period annual cash inflows of $12,000 for each of three years. Assuming a discount rate of 10%, what is the net present value of this investment? Selected present value factors for a single sum are shown in the table below: $$\begin{array} { c c c }
i = 10\% & i = 10 \% & i = 10\% \
n = 1 & n = 2 & n = 3 \
.9091 & .8264 & .7513
\end{array}$$

Question

A given project requires a $28,500 investment and is expected to generate end-of-period annual cash inflows of $12,000 for each of three years. Assuming a discount rate of 10%, what is the net present value of this investment? Selected present value factors for a single sum are shown in the table below: $$\begin{array} { c c c } 
i = 10\% & i = 10 \% & i = 10\% \
n = 1 & n = 2 & n = 3 \
.9091 & .8264 & .7513
\end{array}$$

Quizplus · Accepted Answer

The Answer of A given project requires a $28,500 investment and is expected to generate end-of-period annual cash inflows of $12,000 for each of three years. Assuming a discount rate of 10%, what is the net present value of this investment? Selected present value factors for a single sum are shown in the table below: $$\begin{array} { c c c } 
i = 10\% & i = 10 \% & i = 10\% \
n = 1 & n = 2 & n = 3 \
.9091 & .8264 & .7513
\end{array}$$

A Given Project Requires a $28,500 Investment and Is Expected i=10%i=10%i=10%n=1n=2n=3.9091.8264.7513\begin{array} { c c c } i = 10\% & i = 10 \% & i = 10\% \\n = 1 & n = 2 & n = 3 \\.9091 & .8264 & .7513\end{array}i=10%n=1.9091​i=10%n=2.8264​i=10%n=3.7513​

A Given Project Requires a $28,500 Investment and Is Expected $\begin{array} { c c c } i = 10\% & i = 10 \% & i = 10\% \\n = 1 & n = 2 & n = 3 \\.9091 & .8264 & .7513\end{array}$