A given project requires a $25,000 investment and is expected to generate end-of-period annual cash inflows as follows: $$\begin{array} { c c c c }
\text { Year 1 } & \text { Year 2 } & \text { Year 3 } & \text { Total } \
\hline \$ 4,000 & \$ 15,000 & \$ 6,000 & \$ 25,000
\end{array}$$ Assuming a discount rate of 10%, what is the net present value of this investment? Selected present value factors for a single sum are shown in the table below:
$$\begin{array} { c c c }
i = 10 \% & i = 10 \% & i = 10 \% \
n = 1 & n = 2 & n = 3 \
\hline .9091 & .8264 & .7513
\end{array}$$
A)$6,217.50
B)($4,459.80)
C)($6,217.50)
D)$8,275.00
E)$0.00

Question

A given project requires a $25,000 investment and is expected to generate end-of-period annual cash inflows as follows: $$\begin{array} { c c c c } 
\text { Year 1 } & \text { Year 2 } & \text { Year 3 } & \text { Total } \
\hline \$ 4,000 & \$ 15,000 & \$ 6,000 & \$ 25,000
\end{array}$$ Assuming a discount rate of 10%, what is the net present value of this investment? Selected present value factors for a single sum are shown in the table below:
$$\begin{array} { c c c } 
i = 10 \% & i = 10 \% & i = 10 \% \
n = 1 & n = 2 & n = 3 \
\hline .9091 & .8264 & .7513
\end{array}$$
A)$6,217.50
B)($4,459.80)
C)($6,217.50)
D)$8,275.00
E)$0.00

Quizplus · Accepted Answer

The Answer of A given project requires a $25,000 investment and is expected to generate end-of-period annual cash inflows as follows: $$\begin{array} { c c c c } 
\text { Year 1 } & \text { Year 2 } & \text { Year 3 } & \text { Total } \
\hline \$ 4,000 & \$ 15,000 & \$ 6,000 & \$ 25,000
\end{array}$$ Assuming a discount rate of 10%, what is the net present value of this investment? Selected present value factors for a single sum are shown in the table below:
$$\begin{array} { c c c } 
i = 10 \% & i = 10 \% & i = 10 \% \
n = 1 & n = 2 & n = 3 \
\hline .9091 & .8264 & .7513
\end{array}$$
A)$6,217.50
B)($4,459.80)
C)($6,217.50)
D)$8,275.00
E)$0.00

A Given Project Requires a $25,000 Investment and Is Expected