Assuming a discount rate of 13%, 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.

 A project requires a $36,000 initial investment and is expected to generate end-of-period annual cash inflows as follows:
 

Year 1    Year 2    Year 3
$ 16,000    $ 17,000    $ 16,000

Assuming a discount rate of 13%, 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 = 13%    i = 13%    i = 13%
n = 1    n = 2    n = 3
0.8850    0.7831    0.6931


Multiple Choice

$0


$2,562 Correct

$38,562


$(11,662)


$(4,739)

Explanation

 

Thanks