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A given project requires a $36,000 investment and is expected to generate end-of-period annual cash...

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Accounting

A given project requires a $36,000 investment and is expected to generate end-of-period annual cash inflows as follows:

Year 1 Year 2 Year 3
$16,000 $17,000 $16,000

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% i = 10% i = 10%
n = 1 n = 2 n = 3
0.9091 0.8264 0.7513

$0

$4,616

($14,050)

($27,047)

$40,616

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