Use the following table for this questio 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...


Use the following table for this questio


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% and is considering investing in a project which costs $25,000 and is expected to generate cash inflows of $10,000 at the end of each year for three years. The net presentvalue of this project is:



a.  $25,310


b.  $15,000


c.  $9,170


d.  $5,310



Jun 08, 2022
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