TB MC Qu. 24-73 (Algo) A project requires...

A project requires a $39,000 initial investment and is expected to generate end-of-period annual cash inflows as follows:

Year 1	Year 2	Year 3
$ 17,500	$ 18,500	$ 17,500

Assuming a discount rate of 10%, what is the net present value (rounded to the nearest whole dollar) of this investment? Selected present value factors for a single sum are shown in the table below.

i = 10%	i = 10%	i = 10%
n = 1	n = 2	n = 3
0.9091	0.8264	0.7513

Multiple Choice

• $0

• $5,345

• $(10,197)

• $44,345

• $(2,289)