A given project requires a $28,500 investment and is expected to generate end-of-period annual cash inflows of $12,000 for each of three years.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:
$$\begin{array} { c c c }
i = 10 \% & i = 10 \% / 4 & i = 10 \% / 1 \
n = 1 & n = 2 & n = 3 \
\hline .9091 & .8264 & .7513
\end{array}$$
A) $0.00
B) $2,668.00
C) ($7,461.00)
D) $1,341.60
E) $29,841.60

Question

A given project requires a $28,500 investment and is expected to generate end-of-period annual cash inflows of $12,000 for each of three years.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:
$$\begin{array} { c c c } 
i = 10 \% & i = 10 \% / 4 & i = 10 \% / 1 \
n = 1 & n = 2 & n = 3 \
\hline .9091 & .8264 & .7513
\end{array}$$
A) $0.00
B) $2,668.00
C) ($7,461.00)
D) $1,341.60
E) $29,841.60

Quizplus · Accepted Answer

(12,000)(.9091+.8264+.7513) - 28,500 = $1,341.60

A Given Project Requires a $28,500 Investment and Is Expected i=10%i=10%/4i=10%/1n=1n=2n=3.9091.8264.7513\begin{array} { c c c } i = 10 \% & i = 10 \% / 4 & i = 10 \% / 1 \\n = 1 & n = 2 & n = 3 \\\hline .9091 & .8264 & .7513\end{array}i=10%n=1.9091​i=10%/4n=2.8264​i=10%/1n=3.7513​​

A Given Project Requires a $28,500 Investment and Is Expected $\begin{array} { c c c } i = 10 \% & i = 10 \% / 4 & i = 10 \% / 1 \\n = 1 & n = 2 & n = 3 \\\hline .9091 & .8264 & .7513\end{array}$