Use the following table,

                 

	Present Value of an Annuity of 1
Period	8%	9%	10%
1	0.926	0.917	0.909
2	1.783	1.759	1.736
3	2.577	2.531	2.487

A company has a minimum required rate of return of 9%. It is considering investing in a project which costs $260000 and is expected to generate cash inflows of $120000 at the end of each year for three years. What is the net present value of this project?

Answer rating: 100% (QA)

Heres how to calculate the NPV Identify the cash flows Initial investment 260000 negative because i... View the full answer