Present Value of an Annuity of 1 Periods 8% 9% 10% 1  
Present Value of an Annuity of 1
Periods 8% 9% 10%
1 .926 .917 .909
2 1.783 1.759 1.736
3 2.577 2.531 2.487
A company has a minimum required rate of return of 9%. It is considering investing in a project that costs $210,000 and is expected to generate cash inflows of $84,000 at the end of each year for three years. The net present value of this project is
Group of answer choices
$212,604.
$42,000.
$21,261.
$2,604.
Homework Answers
Net present value = Present value of cash inflow -Present value of cash outflow
= (84000*2.531)-210000
Net present value = 2604
So answer is d) $2604
Present Value of an Annuity of 1 Periods 8% 9% 10% 1 0.926 0.917 0.909 2...
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