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A Project Has an Anticipated Stream of Annual Net Receipts

Question 56

Multiple Choice

A project has an anticipated stream of annual net receipts of $1,000. Its life is 12 years. No salvage value is expected. What is the net present value of the project, if its price is $6,000 and the applicable discount rate is 12%?


A) 194.40
B) 1440.00
C) 6194.40
D) 7440.00
E) none of the above

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