Given That a Project with an Estimated Life of Eight

question 63

Multiple Choice

Given that a project with an estimated life of eight years has a net present value of $125 000,calculate its equivalent annual value if the required rate of return is 9% p.a.

• A)$11 250 p.a.
• B)$250 937 p.a.
• C)$22 584 p.a.
• D)$125 000 p.a.