In: Finance
Use the following table,
Present Value of an Annuity of 1 | |||
Period | 8% | 9% | 10% |
1 | 0.926 | 0.917 | 0.909 |
2 | 1.783 | 1.759 | 1.736 |
3 | 2.577 | 2.531 | 2.487 |
A company has a minimum required rate of return of 9%. It is
considering investing in a project which costs $350000 and is
expected to generate cash inflows of $150000 at the end of each
year for three years. The net present value of this project is
$379650.
$75000.
$37965.
$29650.