Use the information in the table below for the following 5 questions. A capital investment project is estimated to have the following after-tax cash flows, by year: 3 -$60,000 $20,000 $22,500 $17,500 $25,000 The company utilizes a discount rate of 15% to evaluate capital projects. You may have rounding errors in your calculations so choose the closest answer. Assume cash flows are received equally over the year. The NET PRESENT VALUE for the project shown above is: O $4,789.25 O $1,150.33 O $0.00 O $204.90

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 21P: Your division is considering two investment projects, each of which requires an up-front expenditure...
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Use the information in the table below for the following 5 questions.
A capital investment project is estimated to have the following after-tax cash flows, by year:
2
3
4
-$60,000
$20,000
$22,500
$17,500
$25,000
The company utilizes a discount rate of 15% to evaluate capital projects. You may have rounding errors in your calculations so
choose the closest answer. Assume cash flows are received equally over the year.
The NET PRESENT VALUE for the project shown above is:
O-$4,789.25
O $1,150.33
O $0.00
O $204.90
O $1183.65
Click Save and Submit to save and submit. Click Save All Answers to save all answers.
Transcribed Image Text:Use the information in the table below for the following 5 questions. A capital investment project is estimated to have the following after-tax cash flows, by year: 2 3 4 -$60,000 $20,000 $22,500 $17,500 $25,000 The company utilizes a discount rate of 15% to evaluate capital projects. You may have rounding errors in your calculations so choose the closest answer. Assume cash flows are received equally over the year. The NET PRESENT VALUE for the project shown above is: O-$4,789.25 O $1,150.33 O $0.00 O $204.90 O $1183.65 Click Save and Submit to save and submit. Click Save All Answers to save all answers.
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