Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company is evaluating an investment which has an initial investment of $4,000. Annual net cash flows is expected to be $2,000 over the next

A company is evaluating an investment which has an initial investment of $4,000. Annual net cash flows is expected to be $2,000 over the next three years. The company requires a 10% annual return. The present value of an annuity factor for 10% and 3 periods is 2.4869. The present value of $1 factor for 10% and 3 periods is 0.7513. The net present value is $ ?? ( round your answer to the nearest whole dollar). Can you please explain how to get the answer ?Not gettting the formula nor the workings of the problems ..

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial & Managerial Accounting

Authors: Carl S. Warren

10th Edition

0324663811, 9780324663815

More Books

Students also viewed these Accounting questions

Question

1. The next area, Now we will turn to, or The second step is.

Answered: 1 week ago

Question

What is the general process for selecting expatriates?

Answered: 1 week ago