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you are considering a project which will provide annual cash inflows of $4,500,

ID: 2384537 • Letter: Y

Question

you are considering a project which will provide annual cash inflows of $4,500, $5,700, and $8,000 at the end of each year for the next three years, respectively. what is the net present value of these cash flows, given a 9 percent discount rate? you are considering a project which will provide annual cash inflows of $4,500, $5,700, and $8,000 at the end of each year for the next three years, respectively. what is the net present value of these cash flows, given a 9 percent discount rate? you are considering a project which will provide annual cash inflows of $4,500, $5,700, and $8,000 at the end of each year for the next three years, respectively. what is the net present value of these cash flows, given a 9 percent discount rate?

Explanation / Answer

Year Annual Cash Flows PV @ 9% Present Value 1 $4,500.00 0.917431 $4,128.44 2 $5,700.00 0.84168 $4,797.58 3 $8,000.00 0.772183 $6,177.47 Net present Value $15,103.48