Homework Answers
Initial Cost = $11,000
Present value of cash inflows = $3,300 * PVAF(6% , 4 years)
Present value of cash inflows = $3,300 * 3.4651056
Present value of cash inflows = $11,434.85
Net present value = $11,434.85 - $11,000
Net present value = 434.85
or Net present value = $435
Option 'B' is correct
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