Multiple Choice
A project has an anticipated stream of annual net receipts of $20,000. Its life is 6 years. No salvage value is expected at the end of the 6 years. Compute the net present value of the project, if its price is $80,000 and the applicable discount rate is 10%.
A) -68,710.00
B) -44,568.00
C) 7,106.00
D) 74, 312.00
E) 87,106.00
Correct Answer:
Verified
Correct Answer:
Verified
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