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Home Q & A Board Other Fields Homework Help Business Accounting
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KarenSmith KarenSmith
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7 years ago
Present value of 1
   Periods   4%   5%   6%
   1   .9615   .9524   .9434
   2   .9246   .9070   .8900
   3   .8890   .8638   .8396
A company has a 4% blended cost of capital and is considering investing in a project that requires an initial cash outlay of $12,000. The project expects to generate $4,000 in year 1, $4,500 in year 2 and $5,000 in year 3. This equipment has an estimated useful life of 3 years. Assume the revenue is generated at the end of the year. The present value of future cash inflows for this project is
A) $     451.70
B) $12,451.70
C) $13,500.00
D) $  1,245.70
Textbook 
Survey of Accounting: Making Sense of Business

Survey of Accounting: Making Sense of Business


Edition: 1st
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hol23hol23
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KarenSmith Author
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#2
7 years ago
THANKS
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