Question
A project requires a $50,000 initial investment and is expected to generate end-of-period annual cash inflows as follows: Year 1 Year 2 $ 20,000
A project requires a $50,000 initial investment and is expected to generate end-of-period annual cash inflows as follows: Year 1 Year 2 $ 20,000 $ 12,000 Year 3 $ 18,000 Total $ 50,000 Save & Exit Assuming a discount rate of 12%, 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=12% n=1 i = 12% i = 12% n = 2 0.8929 0.7972 n = 3 0.7118 Multiple Choice O $0 $36,000
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