Using the present value factors in your text, the estimated annual cash inflow
from the following investment proposal would be (rounded)
|
Investment cost |
$13,000 |
|
Net present value |
$ 3,300 |
|
Life of the project |
6 years |
|
Cost of capital |
14% |
a. $3,800.
b. $3,900.
c. $4,000.
d. $4,100.
e. $4,200.