Question
An investment requires an initial outlay of $50,000, and is expected to generate cash flows of $13,000 a year for eight years. The required return
An investment requires an initial outlay of $50,000, and is expected to generate cash flows of $13,000 a year for eight years. The required return is 11%. Determine the replacement chain NPV for this investment to compare it to a mutually exclusive alternative with a 12 year life.
| a. | $53,782 | |
| b. | $42,630 | |
| c. | $21,320 | |
| d. | $92,630 |
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Personal Finance A Practical Approach
Authors: Jane King, Mary Carey
1st Edition
0199668833, 9780199668830
