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Lisa Is Pondering the Construction and Operation of a Home-Based

Question 55

Multiple Choice

Lisa is pondering the construction and operation of a home-based cattery. She expects it will cost $35,000 to construct and will have a lifespan of four years before it collapses due to faulty construction and ammonia rot. Cash flows during those four glorious years are estimated as follows: Lisa is pondering the construction and operation of a home-based cattery. She expects it will cost $35,000 to construct and will have a lifespan of four years before it collapses due to faulty construction and ammonia rot. Cash flows during those four glorious years are estimated as follows: If the interest rate is 5%, what is the present value of the cattery project? A) -18,800 B) -20,790 C) -26,378 D) -47,168
If the interest rate is 5%, what is the present value of the cattery project?


A) -18,800
B) -20,790
C) -26,378
D) -47,168

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