70.2K
Verified Solution
Link Copied!
Moates Corporation has provided the following data concerning an investment project that it is considering:
| |
| Initial investment | $ | 400,000 | |
| Annual cash flow | $ | 130,000 | per year |
| Expected life of the project | | 4 | years |
| Discount rate | | 9 | % |
| |
Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.
The net present value of the project is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
A) $400,000
B) $(21,070)
C) $21,070
D) $(270,000)
Answer & Explanation
Solved by verified expert
