1 Periods 8% 2 Present Value of an Annuity of 1 3 10% 0.926 0.917 0.909 1.783 1.759 1.736 2.577 2.531 2.487 9% A company has a minimum required rate of return of 9%. It is considering investing in a project that costs $186000 and is expected to generate cash inflows of $75000 at the end of each year for three years. The net present value of this project is O $3825. O $18983. O $189825. $37500.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
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Periods 8%
1
Present Value of an Annuity
of 1
2
30
9%
0.926 0.917
1.783 1.759
2.577 2.531
10%
0.909
1.736
2.487
A company has a minimum required rate of return of 9%. It is considering investing in a project that costs $186000 and is expected to
generate cash inflows of $75000 at the end of each year for three years. The net present value of this project is
O $3825.
O $18983.
O $189825.
O $37500.
Transcribed Image Text:Periods 8% 1 Present Value of an Annuity of 1 2 30 9% 0.926 0.917 1.783 1.759 2.577 2.531 10% 0.909 1.736 2.487 A company has a minimum required rate of return of 9%. It is considering investing in a project that costs $186000 and is expected to generate cash inflows of $75000 at the end of each year for three years. The net present value of this project is O $3825. O $18983. O $189825. O $37500.
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