Cbs company invested in a project that is expected to have an annual cash flow of $10,000. the project's life is five years and has an irr of 14 percent. how much was the initial investment in the project?
Use the formula of the present value of an annuity ordinary which is Pv=pmt [(1-(1+r)^(-n))÷r] Pv initial investment? PMT annual cash flow 10000 R interest rate 0.14 N time 5years Pv=10,000×((1−(1+0.14)^(−5))÷(0.14)) pv=34,330.81
