Moates Corporation has provided the following data concerning an investment proj

Question

Moates Corporation has provided the following data concerning an investment project that it is considering: $380,000 Initial investment Annual cash flow Expected life of the project Discount rate $133,000 per year 4 years 13% Click here to view Exhibit 138-1 and Exhibit 138-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the project is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Multiple Choice $(247,000) $15,542 $380,000 $(15,542)

Explanation / Answer

Present value of annual cash flows 395542 =133000*2.974 Less: Investment cost 380000 Net present value 15542 Option 2 is correct

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