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Question
A given project requires a $30,000 investment and is expected to generate end-of-period annual cash inflows as follows:
| Year 1 | Year 2 | Year 3 | Total |
| $12,000 | $8,000 | $10,000 | $30,000 |
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:
| i = 10% n = 1 | i = 10% n = 2 | i = 10% n = 3 |
| .9091 | .8264 | .7513 |
A. $0.00
B. $21,000.00
C. ($7,461.00)
D. $25,033.32
E. ($4,966.68)
Answer
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