49. Roman Knoze is considering two investments. Each will cost $20,000 initially

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49. Roman Knoze is considering two investments. Each will cost $20,000 initially. Project 1 will return annual cash flows of $10,000 in each of three years. Project 2 will return $5,000 in year 1, $10,000 in year 2, and $15,000 in year 3. Roman requires a minimum rate of return of 10%. What is the net present value of Project 2? Would the project be accepted or rejected? Hint: Refer to present value tables.
a. $24,070 and accept
b. $20,000 and accept
c. $5,670 and reject
d. $2,530 and reject
e. $4,070 and accept
49. Roman Knoze is considering two investments. Each will cost $20,000 initially. Project 1 will return annual cash flows of $10,000 in each of three years. Project 2 will return $5,000 in year 1, $10,000 in year 2, and $15,000 in year 3. Roman requires a minimum rate of return of 10%. What is the net present value of Project 2? Would the project be accepted or rejected? Hint: Refer to present value tables. a. $24,070 and accept
b. $20,000 and accept
c. $5,670 and reject
d. $2,530 and reject
e. $4,070 and accept
a. $24,070 and accept
b. $20,000 and accept
c. $5,670 and reject
d. $2,530 and reject
e. $4,070 and accept

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