The details of an investment project are as follows: Cost of asset bought at the start...

Transcribed Image Text:

The details of an investment project are as follows: Cost of asset bought at the start of the project $80,000 Annual cash inflow $25,000 Cost of capital 5% each year Life of the project 8 years The present value of the cash flows that occur in the second year of the project is: O a. $23,800 O b. $22,675 O c. $21,000 O d. $20,575 The details of an investment project are as follows: Cost of asset bought at the start of the project $80,000 Annual cash inflow $25,000 Cost of capital 5% each year Life of the project 8 years The present value of the cash flows that occur in the second year of the project is: O a. $23,800 O b. $22,675 O c. $21,000 O d. $20,575

Answer rating: 100% (QA)

Answer The correct option is B Solution Pres... View the full answer