Use the Following Table $\text { Present Value of an Annuity of } 1$

question 55

Multiple Choice

Use the following table, $\text { Present Value of an Annuity of } 1$
$\begin{array}{rrrr}\text { Period }&8\%&9\%&10\%\\1 & .926 & .917 & .909 \\2 & 1.783 & 1.759 & 1.736 \\3 & 2.577 & 2.531 & 2.487\end{array}$ A company has a minimum required rate of return of 9%.It is considering investing in a project which costs $350,000 and is expected to generate cash inflows of $140,000 at the end of each year for three years.The net present value of this project is

• A)$354,340.
• B)$70,000.
• C)$35,436.
• D)$4,340.

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Definitions:

Psychological Well-Being

A state of mental health that encompasses aspects of emotional, social, and psychological fulfillment and balance.

Middle-Aged Persons

Individuals typically in the age range of 45 to 65 years, often considered to be in the middle stage of life.

Adaptation

The process of adjusting or changing to become better suited to an environment or situation.

Decline

A decrease in the quality, quantity, or importance of something.