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A Project Has an Anticipated Stream of Annual Net Receipts

Question 53

Multiple Choice

A project has an anticipated stream of annual net receipts of $25,000. Its life is 10 years. No salvage value is expected at the end of the 10 years. Compute the net present value of the project, if its price is $150,000 and the applicable discount rate is 8%.


A) -138,420.00
B) -96,027.50
C) 17,752.50
D) 162,187.50
E) 167,752.50

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