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Jenna would like to purchase a new car in three years. If she saves $900 per year in an account that pays 8% annual interest
Jenna would like to purchase a new car in three years. If she saves $900 per year in an account that pays 8% annual interest for the next 3 years, how much will she have saved for a down payment? (Round the final answer to the nearest dollar.) Values for i = 8%, n=3 Present value of an ordinary annuity of $1 2.577 Present value of $1: .772 Future value of an ordinary annuity of $1 3.246 Future value of $1: 1.260 A. $3,395 B. $3,219 C. $2,921 D. $2,319 Anderson Corporation is considering an investment opportunity with the following expected net cash inflows: Year 1, $230,000; Year 2, $305,000; Year 3, $395,000. At the end of Year 3, the residual value of the investment is expected to be zero. The company uses a discount rate of 12%, and the initial investment is $420,000. Calculate the NPV of the investment. Present value of $1: 11% 12% 13% 14% 1 0.901 0.893 0.885 0.877 2 0.812 0.797 0.783 0.769 3 0.731 0.712 0.693 0.675 4 0.659 0.636 0.613 0.592 5 0.593 0.567 0.543 0.519 .... O A. $309,715 B. $430,675 O c. $729,715 D. $716,100
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