ABC Inc. is looking at investing in a 3-year project that will create cash inflows...
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ABC Inc. is looking at investing in a 3-year project that will create cash inflows of $2,000 in the first year, $3,000 in the second year, and $1,000 in the third year. This project costs $18,000, and the salvage value of the project after three years is $2,000. The required return is 10%. What is the Annual Rate of Return for this project? PV 1 2 3 4 5 6 10% 0.909091 0.826446 0.751315 0.683013 0.620921 0.564474 a. 20% b. 8% c. 12% d. 10%
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