Using the tables provided, if an investment is made now for $23,500 that will generate a cash inflow of $8,000 a year for the next 4 years, the net present value of the investment, assuming an earnings rate of 10%, is Group of answer choices $23,500 $16,050 $1,860 $25,360
Using the tables provided, if an investment is made now for $23,500 that will generate a cash inflow of $8,000 a year for the next 4 years, the net present value of the investment, assuming an earnings rate of 10%, is Group of answer choices $23,500 $16,050 $1,860 $25,360
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
ChapterM: Time Value Of Money Module
Section: Chapter Questions
Problem 7MC
Related questions
Question
Following is a table for the 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 |
3 |
0.840 |
0.751 |
0.712 |
4 |
0.792 |
0.683 |
0.636 |
5 |
0.747 |
0.621 |
0.567 |
Following is a table for the present value of an annuity of $1 at compound interest:
Year |
6% |
10% |
12% |
1 |
0.943 |
0.909 |
0.893 |
2 |
1.833 |
1.736 |
1.690 |
3 |
2.673 |
2.487 |
2.402 |
4 |
3.465 |
3.170 |
3.037 |
5 |
4.212 |
3.791 |
3.605 |
Using the tables provided, if an investment is made now for $23,500 that will generate a
Group of answer choices
$23,500
$16,050
$1,860
$25,360
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning