Answer:
Net Present Value = $1,762.95
Explanation:
Equal payments made at the end of each year implies that the cash inflows from year 1 to 7 form an annuity where:
where PMT is the the equal payment cash inflow received at the end of each period and
= The present value of an annuity factor for n years at i%
The present value of an annuity factor for 7 years at 10% equals
therefore: Net Present value of this investment given a 10% return o investments equals
