Required information [The following information applies to the questions display

Question

Required information [The following information applies to the questions displayed below.) Park Co. is considering an investment that requires immediate payment of $27,000 and provides expected cash inflows of $9,000 annually for four years. Park Co. requires a 10% return on its investments 1-a. what is the net present value of this investment? (PVofSL FVof$1, PVAof$1, and EVAof$1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) Amount x PV Factor Present Value Annual cash flow Net present value

Explanation / Answer

PV Present Cash flow Select chart amount* Factor = value annual cash flow present value of an annuity of 1 9000* 3.1699 = 28529 immediate cash outflows 27,000 net present value 1,529

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