Question

A company has a minimum required rate of return of 9%. It is considering investing in a project that requires an investment of $210,000 and is expected to generate cash inflows of $90,000 at the end of each year for three years. The present value of future cash inflows for this project is:________

Answer 1

Answer:

$227,816.52

Explanation:

Using the financial calculator to find the present value;

Cash flow for first year = $90,000

Cash flow for second year = $90,000

Cash flow for third year = $90,000

I = 9%

Pv =$227,816.52