You Are Making an Investment of $110,000 and Require a Rate

question 74

Multiple Choice

You are making an investment of $110,000 and require a rate of return of14.6 percent.You expect to receive $48,000 in the first year, $52,500 in the second year, and $55,000 in the third year.There will be a cash outflow of $900 in the fourth year to close out the investment.What is the net present value of this investment?

• A)$7,881.55
• B)$4,305.56
• C)$1,879.63
• D)$633.33
• E)$8,534.25

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