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GalinKa [24]
3 years ago
15

Use the following table:

Business
1 answer:
UNO [17]3 years ago
7 0

Answer:

c. $56,200

Explanation:

The cash inflows = $200,000, r = required rate of return = 9%, n = number of years = 3

Present Value of Annuity Factor (9%,3) = 2.531

Net Present Value of the Project = Cash inflows * Present Value of Annuity Factor (r,n) - Cost of Project

Net Present Value of the Project = ($200,000 * 2.531) - $450,000

Net Present Value of the Project = $506,200 - $450,000

Net Present Value of the Project = $56,200

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