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1 Below is a table for the present value of s1 at Compound interest. Year 696 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826
1 Below is a table for the present value of s1 at Compound interest. Year 696 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Below is a table for the present value of an annuity of 51 at compound interest. Year 696 10% 12% 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables above, if an investment is made now for $22,500 that will generate a cash inflow of $7,500 a year for the next four years, what would be the net present value (rounded to the nearest dollar) of the investment, assuming an earnings rate of 10%? Oa. $7,500 O. 323,775 Oc. $22.500 Od. $1.275
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