A given project requires a $28,500 investment and is expected to generate end-of-period annual cash inflows of $12,000 for each of three years. 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) $0.00
B) $2,668.00
C) ($7,461.00)
D) $1,341.60
E) $29,841.60
D) $1,341.60
Explanation: (12,000)(.9091 + .8264 + .7513) - 28,500 = $1,341.60
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