Question
Solar Winds Inc. has a solar plant project that has an initial investment of $500,000, the estimated life of the project is 10 years. Market
Solar Winds Inc. has a solar plant project that has an initial investment of $500,000, the estimated life of the project is 10 years. Market expected rate of return is 9%.
| Year | Annual Profits |
| 1 | 30,000 |
| 2 | 30,000 |
| 3 | 50,000 |
| 4 | 50,000 |
| 5 | 50,000 |
| 6 | 75,000 |
| 7 | 75,000 |
| 8 | 80,000 |
| 9 | 60,000 |
| 10 | 50,000 |
What is the present value of all the 10 cash inflows of this project?
Question 1 options:
| $333,000 | |
| $383,000 | |
| -$333,000 | |
| -$383,000 |
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Collectible Investments For The High Net Worth Investor
Authors: Stephen Satchell
1st Edition
0123745225,0080923054
