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Use the Following Table  Present Value of an Annuity of 1\text { Present Value of an Annuity of } 1

Question 56

Multiple Choice

Use the following table,  Present Value of an Annuity of 1\text { Present Value of an Annuity of } 1
 Period 8%9%10%1.926.917.90921.7831.7591.73632.5772.5312.487\begin{array}{rrrr}\text { Period }&8\%&9\%&10\%\\1 & .926 & .917 & .909 \\2 & 1.783 & 1.759 & 1.736 \\3 & 2.577 & 2.531 & 2.487\end{array} A company has a minimum required rate of return of 9%.It is considering investing in a project which costs $350,000 and is expected to generate cash inflows of $140,000 at the end of each year for three years.The net present value of this project is


A) $354,340.
B) $70,000.
C) $35,436.
D) $4,340.

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