A project requires an initial investment of $1000 and will generate $400 of net cash inflow for the next 8 years. Assuming a discount rate of 5%, what is the project's NPV?

Select one:

a. $3,585.28

b. $2,585.28

c. $6,463.20

d. $1,585.28

Question 2

Not answered

Marked out of 1.00

Flag question

Question text

Another project expects gross annual cash inflow of $700 but incurring related annual expenses of $200. The initial investment for the project is $1,500. The assumed discount rate is 4% and the life of the project is 7 years.

Select one:

a. $1,501.05

b. $4,040.93

c. $2,540.93

d. $3,629.90

Question 3

Not answered

Marked out of 1.00

Flag question

Question text

A friend inherits an annuity policy that provides $10,000 annually for the next 4 years. In an interest rate environment of 3%, what is the inheritance worth today?

Select one:

a. 47,171

b. 37,171

c. 40,000

d. 11,255