Smith Corporation is considering an investment that will cost $10,000 now and will produce cash inflows of $5,000 in year one, $5,000 in year two, and $2,000 in year three. Assuming a discount rate of 8%, what is the net present value of this investment? A. $1,025
B. $504
C. $180
D. - $126

B. $504

Explanation:

The computation of the net present value of this investment is shown below:

Year     Cash flow    PV factor at 8%        Present value

0           -$10,000             1                        -$10,000

1             $5,000           0.92593               $4,629.63

2            $5,000           0.85734                $4,286.69

3             $2,000           0.79383               $1,587.66

Net present value                                      $503.99

hence, the correct option is b. $504

(i know i'm late but the answer's "things about yourself" because you want to list things you're capable of, why you want to open up the business, the amount of money you're putting into it,etc.) i'm guessing you take online school small business, the answers to the quizzes are all over quizlet. just look up your question and type quizlet after it and it'll pop up.