A Given Project Requires a $28,000 Investment and Is Expected $$\begin{array} { c c c } \text { Year 1 } & \text { Year 2 } & \text { Year 3 } \\\hline\$ 12,000 & \$ 13,000 & \$ 12,000\end{array}$$

question 6

Multiple Choice

A given project requires a $28,000 investment and is expected to generate end-of-period annual cash inflows as follows: $$\begin{array} { c c c } \text { Year 1 } & \text { Year 2 } & \text { Year 3 } \\\hline\$ 12,000 & \$ 13,000 & \$ 12,000\end{array}$$ 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.
$$\begin{array} { c c c } i = 10 \% & i = 10 \% & i = 10 \% \\n = 1 & n = 2 & n = 3 \\\hline .9091 & .8264 & .7513\end{array}$$

• A)$0.00
• B)$2,668.00
• C)($7,461.00)
• D)$30,668.00
• E)($4,966.68)

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Definitions:

Food Production

The process of cultivating plants and raising livestock for the purpose of providing food for consumption.

Per Capita Incomes

The average income earned per person in a certain area in a specified year.

Agricultural Products

Goods derived from agriculture and farming activities, including crops, livestock, and other raw materials.

Farm Households

Families living and working on farms, often combining both their living quarters and business operations in the same place.