Question content area top

Part $1$

A company is considering an iron ore extraction project that requires an initial investment of $ $514$ comma $000$ and will yield annual cash inflows of $ $150$ comma $000$ for four years. The$$ company's discount rate is$9\%.$ What is the NPV of the$$ project?

Present value of an ordinary annuity of$$ $$1$:

$$

$8\%$

$9\%$

$10\%$

$1$

$0\mathrm{.}926$

$0\mathrm{.}917$

$0\mathrm{.}909$

$2$

$1\mathrm{.}783$

$1\mathrm{.}759$

$1\mathrm{.}736$

$3$

$2\mathrm{.}577$

$2\mathrm{.}531$

$2\mathrm{.}487$

$4$

$3\mathrm{.}312$

$3\mathrm{.}240$

$3\mathrm{.}170$

$5$

$3\mathrm{.}993$

$3\mathrm{.}89$

$3\mathrm{.}791$

$6$

$4\mathrm{.}623$

$4\mathrm{.}486$

$4\mathrm{.}355$

$7$

$5\mathrm{.}206$

$5\mathrm{.}033$

$4\mathrm{.}868$

$8$

$5\mathrm{.}747$

$5\mathrm{.}535$

$5\mathrm{.}335$

$9$

$6\mathrm{.}247$

$5\mathrm{.}995$

$5\mathrm{.}759$

$10$

$6\mathrm{.}71$

$6\mathrm{.}418$

$6\mathrm{.}145$

Question content area bottom

Part $1$

A$.$$ $28$ comma $000$

$ $28$ comma $000$

B$.$$ $102$ comma $800$

$ $102$ comma $800$

C$.$

$$$$(28$ comma $000)$

D$.$

$$$$(102$ comma $800)$