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denis23 [38]
4 years ago
11

Capstone Investments is considering a project that will produce cash inflows of $11,000 in year 1, $24,000 in year 2, and $36,00

0 in year 3. What is the present value of these cash inflows if the company assigns the project a discount rate of 12 percent?
Business
1 answer:
fomenos4 years ago
7 0

Answer:

Total= $54,578.17

Explanation:

Giving the following information:

Capstone Investments is considering a project that will produce cash inflows of $11,000 in year 1, $24,000 in year 2, and $36,000 in year 3.

To calculate the present value, we need to use the following formula:

PV= FV/(1+i)^n

Year 1= 11,000/1.12= 9,821.43

Year 2= 24,000/1.12^2= 19,132.65

Year 3= 36,000/1.12^3= 25,624.09

Total= $54,578.17

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Hello, your answer is below!

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