2D2B ALLSTAR COMPANY INVESTS IN A PROJECT WITH EXPECTED CASH INFLOWS...
313.
CSO: 2D2a
LOS: 2D2b
Allstar Company invests in a project with expected cash inflows of $9,000 per year
for four years. All cash flows occur at year-end. The required return on investment
is 9%. If the project generates a net present value (NPV) of $3,000, what is the
amount of the initial investment in the project?
a.
$11,253.
b.
$13,236.
c.
$26,160.
d.
$29,160.