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ABC Company has an 8% desired rate of return. In the current year, the company is presente generate future cash inflows as shown below: Year
ABC Company has an 8% desired rate of return. In the current year, the company is presente generate future cash inflows as shown below: Year Net cash inflow 1234 $ 3,000 3,000 3,000 3,000 What is the net present value of this investment opportunity? Present value of $1: 7% 8% 9% 10% n=1 0.934579 0.925926 0.917431 0.909091 n=2 0.873439 0.857339 0.841680 0.826446 n=3 0.816298 0.793832 0.772183 0.751315 n=4 0.762895 0.735030 0.708425 0.683013 Present value of an ordinary annuity of $1: 7% 8% n=1 0.934579 0.925926 9% 0.917431 10% 0.909091 n=2 1.808018 1.783265 1.759111 1.735537 n-3 2.624316 2.577097 2.531295 n=4 2.486852 3.387211 3.312127 3.239720 3.169865 the current year, the company is presented with an investment opportunity that costs $5,000 and will Multiple Choice $14,936. O $4,936. $7,000. $12,000
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