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Multiple Choice Question 58 Use the following table, Present Value of an Annuity of 1 Period 8% 9% 10% 1 0.926 0.917 0.909 2 1.783

Multiple Choice Question 58

Use the following table,

Present Value of an Annuity of 1
Period 8% 9% 10%
1 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 which costs $350000 and is expected to generate cash inflows of $150000 at the end of each year for three years. The net present value of this project is

$29650.

$75000.

$379650.

$37965.

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