A project requires a $34,000 initial investment and is expected to generate end-of-period annual cash inflows as follows

 A project requires a $34,000 initial investment and is expected to generate end-of-period annual cash inflows as follows:
 

Year 1    Year 2    Year 3    Total
$ 13,600    $ 8,800    $ 11,600    $ 34,000

Assuming a discount rate of 11%, what is the net present value (rounded to the nearest whole dollar) of this investment? Selected present value factors for a single sum are shown in the table below:
 

i = 11%    i = 11%    i = 11%
n = 1    n = 2    n = 3
0.9009    0.8116    0.7312


Multiple Choice

$(9,139)


$0


$27,876


$(6,124)

Correct

$24,140

 

Thanks