Question
You are considering an investment project that will provide the following receipts/ disbursements. You will pay $5,000 immediately and receive $2000 each year for three
You are considering an investment project that will provide the following receipts/ disbursements.
You will pay $5,000 immediately and receive $2000 each year for three years, starting two years from today and receive $3000 each year for two years beginning 6 years from today. The investment will require an additional $2,50 be invested in year 5.
If you assume a discount rate of 7.0%, the present value of this investment is
a.)$1250.15
b.)$1990.07
c.)$-1990.07
d.)$-1250.15
Therefore, it is wise
a.) not to invest
b.)negative
c.)zero
d.)invest
In this project because it shows
a.) not to invest
b.)negative
c.)zero
d.)invest
e.)positive
net present value (NPV).
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Financial Accounting and Reporting a Global Perspective
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
4th edition
978-1408066621, 1408066629, 1408076861, 978-1408076866
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