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

Question

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

Quizplus · Accepted Answer

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

The Following Information Pertains to an Investment: What Is the Present