A firm is considering an investment which will provide an annual cash inflow of $10,000 for the next 5 years, and the first cash inflow begins now. What is present value of the cash flow if the interest rate is 4% p.a.? Question 11 options: 1) $12,000 2) $44,520 3) $46,300.80 4) None of the options.
A firm is considering an investment which will provide an annual cash inflow of $10,000 for the next 5 years, and the first cash inflow begins now. What is present value of the cash flow if the interest rate is 4% p.a.? Question 11 options: 1) $12,000 2) $44,520 3) $46,300.80 4) None of the options.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 23E: Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The...
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Question
A firm is considering an investment which will provide an annual
Question 11 options:
1)
$12,000
2)
$44,520
3)
$46,300.80
4)
None of the options.
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