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An investment that costs $30,000 will produce annual cash flows of $10,000 for 4 years. Using a required return of 8%, the investment will generate
An investment that costs $30,000 will produce annual cash flows of $10,000 for 4 years. Using a required return of 8%, the investment will generate (rounded to the nearest dollar) a: Present Value of 1 Rate Periods 7% 8% 4 0.7629 Present Value of an Annuity of 1 Rate Periods 7% 4 9% 0.7350 0.7084 8% 9% 3.3872 3.3121 3.2397 O negative NPV of $31,121. O negative NPV of $3,121. O positive NPV of $33,121. O positive NPV of $3,121.
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