50.1K

Verified Solution

Question

Accounting

Present Value of an Annuity of 1

Periods

9%

10%

11%

1

0.917 0.909 0.901

2

1.759 1.736 1.713

3

2.531 2.487 2.444

A company has a minimum required rate of return of 10% and is considering investing in a project that costs $50000 and is expected to generate cash inflows of $30000 at the end of each year for two years. The net present value of this project is

$10000.

$2080.

$20000.

$5556.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students