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A given project requires a $34,000 investment and is expected to generate end-of-period annual cash inflows as follows: Year 1 Year 2 Year 3 $15,000
A given project requires a $34,000 investment and is expected to generate end-of-period annual cash inflows as follows:
Year 1 Year 2 Year 3 $15,000 $16,000 $15,000
Assuming a discount rate of 10%, what is the net present value of this investment? Selected present value factors for a single sum are shown in the table below:
i = 10% i = 10% i = 10% n = 1 n = 2 n = 3 0.9091 0.8264 0.7513
A. ($25,545) B. $38,129 C. $0 D. $4,129 E. ($13,223)
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