Question
Canadian Cupcake Shop is considering an investment of $50,000. Data related to the investment and present value factors are as follows: Year Cash Inflows Present
Canadian Cupcake Shop is considering an investment of $50,000. Data related to the investment and present value factors are as follows:
| Year | Cash Inflows | Present Value of $1.00 @14% |
|---|---|---|
| 1 | $45,000 | 0.87719 |
| 2 | 44,000 | 0.76947 |
| 3 | 32,000 | 0.67497 |
| 4 | 60,000 | 0.59208 |
| 5 | 60,000 | 0.51937 |
The net present value of the investment is:
Select one:
a. $161,616
b. $111,616
c. $211,616
d. $223,233
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Horngrens Financial & Managerial Accounting The Financial Chapters
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
4th Edition
0133255573, 978-0133255577
