An investment costs $58,462 and offers a return of 12 percent annually for twelve years. What...
An investment costs $58,462 and offers a return of 12 percent annually for twelve years. What are the annual cash inflows anticipated from this investment? Use Appendix D to answer the question. Round your answer to the nearest dollar.
Appendix D
Homework Answers
Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate
58,462=Annuity[1-(1.12)^-12]/0.12
58,462=Annuity*6.194
Annuity=58,462/6.194
=$9438(Approx).
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