Swifty recently invested in a project with a 3-year life span. The net present value was $6200 and annual cash inflows were $15000 for year 1; $17000 for year 2; and $19000 for year 3. The initial investment for the project, assuming a 15% required rate of return, was

	Present Value	PV of an Annuity
Year	of 1 at 15%	of 1 at 15%
1	0.870	0.870
2	0.756	1.626
3	0.658	2.283

$27358.

$32204.

$32386.

$38170.

A project that cost $80000 with a useful life of 5 years is being considered. Straight-line depreciation is being used and salvage value is $5000. The project will generate annual revenues of $24775. The annual rate of return is

58.3%.

23.0%.

25.0%.

24.0%.