A Project Requires a $28,000 Investment and Is Expected to Generate

question 50

Multiple Choice

A project requires a $28,000 investment and is expected to generate end-of-period annual cash inflows as follows: $$\begin{array} { l c c } \text { Year 1 } & \text { Year 2 } & \text { Year 3 } \\\$ 12,000 & \$ 13,000 & \$ 12,000\end{array}$$ 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.
$$\begin{array} { c c c } = 10 \% & i = 10 \% & i = 10 \% \\n = 1 & n = 2 & n = 3 \\0.9091 & 0.8264 & 0.7513\end{array}$$

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