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Use the following table, Present Value of an Annuity of 1 Period 8% 9% 10% 1 0.926 0.917 0.909 2 1.783 1.759 1.736 3 2.577
Use the following table,
| Present Value of an Annuity of 1 | |||
| Period | 8% | 9% | 10% |
| 1 | 0.926 | 0.917 | 0.909 |
| 2 | 1.783 | 1.759 | 1.736 |
| 3 | 2.577 | 2.531 | 2.487 |
A company has a minimum required rate of return of 9%. It is considering investing in a project which costs $340000 and is expected to generate cash inflows of $200000 at the end of each year for three years. The net present value of this project is
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