Assuming a discount rate of 10%, what is the net present value of this investment? Selected present value factors for a single sum are shown in the table below.
A given project requires a $28,000 investment and is expected to generate end-of-period
annual cash inflows as follows:
A) $0.00
B) $2,668.00
C) ($7,461.00)
D) $30,668.00
E) ($4,966.68)
B) $2,668.00
Explanation: .9091($12,000) + .8264($13,000) + .7513($12,000) - $28,000 = $2,668
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Indicate whether the statement is true or false.
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