xiv. Tuttle Enterprises is considering a project that has the following data. What is the project's...

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Answer 1

Answer #1

PV of Cash Inflows = Annual Cash Flows * [{1 - (1 + r)^-n} / r]

= $350 * [{1 - (1 + 0.11)^-4} / 0.11]

= $350 * [0.3413 / 0.11]

= $350 * 3.1024 = $1,085.86

NPV = PV of Cash Inflows - PV of Cash Outflows

= $1,085.86 - $1,000 = $85.86

So, Option "c" is correct.

Answer 2

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