Question
42 Garcia Company is considering a $363,000 investment with the following net cash flows. Garcia requires a 10% return on its investments. The present value
42
Garcia Company is considering a $363,000 investment with the following net cash flows. Garcia requires a 10% return on its investments. The present value of this investment is:
| Annual Net Cash Flows | Present Value of $1 at 10% | |
|---|---|---|
| Initial investment | 1.0000 | |
| Year 1 | $ 123,000 | 0.9091 |
| Year 2 | 83,000 | 0.8264 |
| Year 3 | 143,000 | 0.7513 |
| Year 4 | 253,000 | 0.6830 |
| Year 5 | 73,000 | 0.6209 |
Multiple Choice
-
$505,971.
-
$188,297.
-
$142,971.
-
$254,790.
-
$315,770.
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Financial Accounting
Authors: Kermit D. Larson, William W. Pyle
4th Edition
0256067813, 978-0256067811
