A project requires a $48,000 initial investment and is expected to generate end-of-period annual cash inflows of $22,000 for each of three years. Assuming a discount rate of 12%, what is the net present value of this investment? Selected present value factors for a single sum are shown in the table below:

 A project requires a $48,000 initial investment and is expected to generate end-of-period annual cash inflows of $22,000 for each of three years. Assuming a discount rate of 12%, what is the net present value of this investment? Selected present value factors for a single sum are shown in the table below:
 

i = 12%    i = 12%    i = 12%
n = 1    n = 2    n = 3
0.8929    0.7972    0.7118


Multiple Choice

$4,842 Correct

$0


$9,667


$(15,851)


$52,842