How to find what the net present value of the project is

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Reference no: EM132719300

Present Value of an Annuity of 1

Periods        8%           9%          10%

1             0.926        0.91        7 0.909

2          1.783         1.759        1.736

3           2.577         2.531         2.487

Problem 1: A company has a minimum required rate of return of 9%. It is considering investing in a project that costs $210000 and is expected to generate cash inflows of $85000 at the end of each year for three years. The net present value of this project is

A. $215135.

B. $42500.

C. $21514.

D. $5135.

Reference no: EM132719300

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