Julie Collins recently invested in a project that promised an internal rate of return of 15 percent. If the project has an expected annual cash inflow of $12,000 for six years, with no salvage value, how much did Julie pay for the project? Present value tables or a financial calculator are required
a. $35,000
b. $45,414
c. $72,000
d. $31,708
B
Use Present Value of Annuity Table (6 years,15%)
$12,000 * 3.7845 = $45,414
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Answer the following statement true (T) or false (F)
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