Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you please explain how we got the net present value ? Present Value of an Annuity of 1 Periods 8% 9% 10% 0.926 0.917

Can you please explain how we got the net present value ?

image text in transcribed
Present Value of an Annuity of 1 Periods 8% 9% 10% 0.926 0.917 0.909 2 1.783 1.759 1.736 3 2.577 2.531 2.487 A company has a minimum required rate of return of 9%. It is considering investing in a project that costs $186000 and is expected to generate cash inflows of $75000 at the end of each year for three years. The net present value of this project is

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems

Authors: Cynthia D Heagy, Constance M Lehmann

7th Edition

1111219516, 978-1111219512

More Books

Students also viewed these Accounting questions

Question

The role of life: It consists of your own service to yourself.

Answered: 1 week ago