Project A costs $4,700 and will generate annual after-tax net cash inflows of $1,800 for five years. What is the NPV using 12% as the discount rate? Round your present value factor to three decimal places and final answer to the nearest dollar. (Click here to see present value and future value tables)

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 16EA: Project B cost $5,000 and will generate after-tax net cash inflows of $500 in year one, $1,200 in...
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< Principles of Accounting, Vol... T ime Value of Money
E Table of contents
Search this book
E My highlights
B Print
Present Value of $1 Table
1
Factor =
(1 + i)"
Rate (i)
1%
2%
3%
5%
8%
10%
12%
15%
20%
1
0.990
0.980
0.971
0.952
0.926
0.909
0.893
0.870
0.833
0.980
0.961
0.943
0.907
0.857
0.826
0.797
0.756
0.694
3
0.971
0.942
0.915
0.864
0.794
0.751
0.712
0.658
0.579
4
0.961
0.924
0.888
0.823
0.735
0.683
0.636
0.572
0.482
0.952
0.906
0.863
0.784
0.681
0.621
0.567
0.497
0.402
0.942
0.888
0.837
0.746
0.630
0.564
0.507
0.432
0.335
7
0.933
0.871
0.813
0.711
0.583
0.513
0.452
0.376
0.279
8
0.924
0.853
0.789
0.677
0.540
0.467
0.404
0.327
0.233
9
0.914
0.837
0.766
0.645
0.500
0.424
0.361
0.284
0.194
10
0.905
0.820
0.744
0.614
0.463
0.386
0.322
0.247
0.162
11
0.896
0.804
0.722
0.585
0.429
0.350
0.287
0.215
0.135
12
0.888
0.788
0.701
0.557
0.397
0.319
0.257
0.187
0.112
13
0.879
0.773
0.681
0.530
0.368
0.290
0.229
0.163
0.093
14
0.861
0.758
0.661
0.505
0.340
0.263
0.205
0.141
0.078
15
0.861
0.743
0.642
0.481
0.315
0.239
0.183
0.123
0.065
16
0.853
0.728
0.623
0.458
0.292
0.218
0.163
0.107
0.054
17
0.844
0.714
0.605
0.436
0.270
0.198
0.146
0.093
0.045
18
0.836
0.700
0.587
0.416
0.250
0.180
0.130
0.081
0.038
(u) poļua
Transcribed Image Text:< Principles of Accounting, Vol... T ime Value of Money E Table of contents Search this book E My highlights B Print Present Value of $1 Table 1 Factor = (1 + i)" Rate (i) 1% 2% 3% 5% 8% 10% 12% 15% 20% 1 0.990 0.980 0.971 0.952 0.926 0.909 0.893 0.870 0.833 0.980 0.961 0.943 0.907 0.857 0.826 0.797 0.756 0.694 3 0.971 0.942 0.915 0.864 0.794 0.751 0.712 0.658 0.579 4 0.961 0.924 0.888 0.823 0.735 0.683 0.636 0.572 0.482 0.952 0.906 0.863 0.784 0.681 0.621 0.567 0.497 0.402 0.942 0.888 0.837 0.746 0.630 0.564 0.507 0.432 0.335 7 0.933 0.871 0.813 0.711 0.583 0.513 0.452 0.376 0.279 8 0.924 0.853 0.789 0.677 0.540 0.467 0.404 0.327 0.233 9 0.914 0.837 0.766 0.645 0.500 0.424 0.361 0.284 0.194 10 0.905 0.820 0.744 0.614 0.463 0.386 0.322 0.247 0.162 11 0.896 0.804 0.722 0.585 0.429 0.350 0.287 0.215 0.135 12 0.888 0.788 0.701 0.557 0.397 0.319 0.257 0.187 0.112 13 0.879 0.773 0.681 0.530 0.368 0.290 0.229 0.163 0.093 14 0.861 0.758 0.661 0.505 0.340 0.263 0.205 0.141 0.078 15 0.861 0.743 0.642 0.481 0.315 0.239 0.183 0.123 0.065 16 0.853 0.728 0.623 0.458 0.292 0.218 0.163 0.107 0.054 17 0.844 0.714 0.605 0.436 0.270 0.198 0.146 0.093 0.045 18 0.836 0.700 0.587 0.416 0.250 0.180 0.130 0.081 0.038 (u) poļua
Project A costs $4,700 and will generate annual after-tax net cash inflows of $1,800 for five years. What is the NPV using 12% as the discount rate? Round your
present value factor to three decimal places and final answer to the nearest dollar.
(Click here to see present value and future value tables)
$
Transcribed Image Text:Project A costs $4,700 and will generate annual after-tax net cash inflows of $1,800 for five years. What is the NPV using 12% as the discount rate? Round your present value factor to three decimal places and final answer to the nearest dollar. (Click here to see present value and future value tables) $
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