Question
Garcia Company is considering a $372,000 investment with the following net cash flows. Garcia requires a 13% return on its investments. The present value of
Garcia Company is considering a $372,000 investment with the following net cash flows. Garcia requires a 13% return on its investments. The present value of this investment is:
| Annual Net Cash Flows | Present Value of $1 at 13% | |
|---|---|---|
| Initial investment | 1.0000 | |
| Year 1 | $ 132,000 | 0.8850 |
| Year 2 | 92,000 | 0.7831 |
| Year 3 | 152,000 | 0.6931 |
| Year 4 | 262,000 | 0.6133 |
| Year 5 | 82,000 | 0.5428 |
a. $127,411.
b. $288,095.
c. $171,920.
d. $499,411.
e. $244,231.
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Elementary Statistics A Step By Step Approach
Authors: Allan Bluman
8th Edition
73386103, 978-0073386102
