A Given Project Requires a $28,500 Investment and Is Expected $$\begin{array} { c c c } i = 10 \% & i = 10 \% & i = 10 \% \\n = 1 & n = 2 & n = 3 \\\hline .9091 & .8264 & .7513\end{array}$$

question 122

Multiple Choice

A given project requires a $28,500 investment and is expected to generate end-of-period annual cash inflows of $12,000 for each of three years.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)$1,341.60
• E)$29,841.60

---

Definitions:

Change

A generic term indicating the difference in value or condition over time, often used to describe shifts in markets, prices, or operational conditions.

Non-Eligible Dividends

Dividends paid by a corporation from income that is not eligible for the small business deduction or other special tax deductions, subject to higher personal taxes.

Capital Gains

The profit realized from the sale of assets like stocks, bonds, or real estate, when the selling price exceeds the purchase price.

Marginal Tax Rates

The rate at which the last dollar of income is taxed, showing the percentage of tax applied to your income for each tax bracket.