Question
The Casale Company recently invested in a project with a 3-year life span. The initial investment was $15,060 and the annual cash inflows were $7,000
The Casale Company recently invested in a project with a 3-year life span. The initial investment was $15,060 and the annual cash inflows were $7,000 for year 1; $8,000 for year 2; and $9,000 for year 3. The company expects a 15% required rate of return. What is the net present value of the project?
| a. | $12,000 | |
| b. | $15,264 | |
| c. | $2,994 | |
| d. | $9,744 |
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Financial And Managerial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
14th Edition
1337119202, 978-1337119207
