The following information pertains to an investment: $$\begin{array} { l r }
\text { Investment } & \$ 140,000 \
\text { Annual revenues } & \$ 96,000 \
\text { Annual variable costs } & \$ 32,000 \
\text { Annual fixed out-of-pocket costs } & \$ 20,000 \
\text { Discount rate } & 12 \% \
\text { Expected life of project } & 8 \text { years }
\end{array}$$ What is the present value of the annual cash flow (rounded to the nearest whole number)?

Question

The following information pertains to an investment: $$\begin{array} { l r } 
\text { Investment } & \$ 140,000 \
\text { Annual revenues } & \$ 96,000 \
\text { Annual variable costs } & \$ 32,000 \
\text { Annual fixed out-of-pocket costs } & \$ 20,000 \
\text { Discount rate } & 12 \% \
\text { Expected life of project } & 8 \text { years }
\end{array}$$ What is the present value of the annual cash flow (rounded to the nearest whole number)?

Quizplus · Accepted Answer

The Answer of The following information pertains to an investment: $$\begin{array} { l r } 
\text { Investment } & \$ 140,000 \
\text { Annual revenues } & \$ 96,000 \
\text { Annual variable costs } & \$ 32,000 \
\text { Annual fixed out-of-pocket costs } & \$ 20,000 \
\text { Discount rate } & 12 \% \
\text { Expected life of project } & 8 \text { years }
\end{array}$$ What is the present value of the annual cash flow (rounded to the nearest whole number)?

The Following Information Pertains to an Investment What Is the Present Value of the Annual Cash Flow