Lisa is pondering the construction and operation of a home-based cattery. She expects it will cost $25,000 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 10,000 3,000
2 12,000 4,000
3 13,000 5,000
4 10,000 6,000
If the interest rate is 5%, what is the present value of the cattery project?
A) 8,522
B) 8,823
C) 9,124
D) 9,625
C
Business
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With ______________, each shareholder is entitled to a total number of votes equal to the number of board members to be elected multiplied by the number of voting shares that the shareholder owns.
Fill in the blank(s) with the appropriate word(s).
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All of the following are transaction types that occur during the life of an asset except ___________ .
a. Acquisition b. Depreciation c. Allocation d. Retirement
Business