A project has estimated annual cash flows of $90,000 for 3 years and is estimated to cost $250,000. Assume a minimum acceptable rate of return of 10%. Present Value of $1 at Compound Interest Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Present Value of an Annuity of $1 at Compound Interest 3.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
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A project has estimated annual cash flows of $90,000 for 3 years and is estimated to cost $250,000.
Assume a minimum acceptable rate of return of 10%.
Present Value of $1 at Compound Interest
Year
6%
10%
12%
1
0.943
0.909
0.893
2
0.890
0.826
0.797
0.840
0.751
0.712
4
0.792
0.683
0.636
5
0.747
0.621
0.567
Present Value of an Annuity of $1 at Compound Interest
3.
Transcribed Image Text:A project has estimated annual cash flows of $90,000 for 3 years and is estimated to cost $250,000. Assume a minimum acceptable rate of return of 10%. Present Value of $1 at Compound Interest Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Present Value of an Annuity of $1 at Compound Interest 3.
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