Business, 10.05.2021 16:10 citiboy45

Use the following table: Present Value of an Annuity of 1
Period 8% 9% 10%
1 0.926 0.917 0.909
2 1.783 1.759 1.736
3 2.577 2.531 2.487

A company has a minimum required rate of return of 9%. It is considering investing in a project which costs $450000 and is expected to generate cash inflows of $200000 at the end of each year for three years. The net present value of this project is:

a. $100000.
b. $506200.
c. $56200.

Answers: 2

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Use the following table: Present Value of an Annuity of 1
Period 8% 9% 10%
1 0.926 0...

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