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

Question 34

Multiple Choice

Lisa is pondering the construction and operation of a home-based cattery. She expects it will cost $15,000 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 $15,000 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) 2,756 B) 3,124 C) 2,983 D) 3,277
If the interest rate is 5%, what is the present value of the cattery project?


A) 2,756
B) 3,124
C) 2,983
D) 3,277

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