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x D Chapter 11 Quiz m.tpx Question 2(of 7) 2. an investment project that it is c

ID: 341764 • Letter: X

Question

x D Chapter 11 Quiz m.tpx Question 2(of 7) 2. an investment project that it is considering Fimbrez Corporation has provided the tollowing data concerning Initial investment $240 Annual cash flow $133,000 xpected lfe of the Discount rate factoris using Click here to vnew Exhibit 118-1 and ExhibIT 118-2, to determine the appropriate discount tables The net present value of the project is closest to (Round discount factorfs) to 3 decimal places, Intermediate and final answers to the nearest dollar amount) O $155.542 O $240.000 O s(107000) O $(155,542 Type here to search F6 F8 F9 10 8 6 8 9

Explanation / Answer

Calculate net present value :

Net present value = Present value of cash inflow-Present value of cash outflow

= (133000*2.974)-240000

Net present value = 155542

so answer is a) $155542