Lisa is pondering the construction and operation of a home-based cattery. She expects it will cost $35,000 to construct and will have a lifespan of four years before it collapses due to faulty construction and ammonia rot
Cash flows during those four glorious years are estimated as follows:
Year Inflow Outflow
1 6,000 3,000
2 7,000 3,300
3 8,000 3,600
4 9,000 3,900
If the interest rate is 5%, what is the present value of the cattery project?
A) -18,800
B) -20,790
C) -26,378
D) -47,168
B
You might also like to view...
Which of the following is not a critical issue for a company whose management intends to engage in e-commerce?
A) privacy B) credit card fraud in developing countries C) ensuring that logos and other brand identity elements are consistent with local preferences D) ensuring a company's computer system supports only a particular language E) the availability of hot spots for Wi-Fi
Which of the following formats has only two response options?
A) the twins format B) the two response format C) the bi-dual format D) the two choice format E) dual-choice format