Sheridan Inc. recently invested in a project with a 3-year life span. The net present value was $7000 and annual cash inflows were $19000 for year 1; $21000 for year 2; and $23000 for year 3. The initial investment for the project, assuming a 15% required rate of return, was Year 1 2 3 Present Value of 1 at 15% 0.870 0.756 0.658 $34454. $39818. $4054 $47810. PV of an Annuity of 1 at 15% 0.870 1.626 2.283

Sheridan Inc. recently invested in a project with a 3-year life span. The net present value was $7000 and annual cash inflows were $19000 for year 1; $21000 for year 2; and $23000 for year 3. The initial investment for the project, assuming a 15% required rate of return, was $34454 $39818. 54059 $47810