Allstar Company invests in a project with expected cash inflows of $9,000 per year for four years.
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Allstar Company invests in a project with expected cash inflows of $9,000 per year for four years. All cash flows occur at year-end. The required return on investment is 9%. If the project generates a net present value (NPV) of $3,000, what is the amount of the initial investment in the project? Use the present value tables provided in Appendix A and round to the nearest answer option.
a. $11,253
b. $13,236
c. $26,160
d. $29,160
Net Present ValueWhat is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at...
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c 26160 Allstars initial investme...View the full answer
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