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A project requires a $41,000 initial investment and is expected to generate end-of-period annual cash inflows as follows: Year 1 Year 2 Year 3 $
A project requires a $41,000 initial investment and is expected to generate end-of-period annual cash inflows as follows:
Year 1 | Year 2 | Year 3 |
$ 18,500 | $ 19,500 | $ 18,500 |
Assuming a discount rate of 13%, what is the net present value (rounded to the nearest whole dollar) of this investment? Selected present value factors for a single sum are shown in the table below.
i = 13% | i = 13% | i = 13% |
n = 1 | n = 2 | n = 3 |
0.8850 | 0.7831 | 0.6931 |
Group of answer choices
$44,465
$3,465
$(13,197)
$(3,836)
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