A Project Has an Anticipated Stream of Annual Net Receipts

question 56

Multiple Choice

A project has an anticipated stream of annual net receipts of $1,000. Its life is 12 years. No salvage value is expected. What is the net present value of the project, if its price is $6,000 and the applicable discount rate is 12%?

• A) 194.40
• B) 1440.00
• C) 6194.40
• D) 7440.00
• E) none of the above

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