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(Solved): Present Value Tables Refer to Present Value Tables. Basil Company is considering two investments. Ea ...
Present Value Tables
Refer to Present Value Tables. Basil Company is considering two investments. Each
will cost $20,000 initially. Project 1 will return annual cash flows of $10,000 in each
of 3 years. Project 2 will return $5,000 in year 1,$10,000 in year 2 , and $15,000 in
year 3. The company requires a minimum rate of return of 10 percent. What is the
net present value of Project 1 ?
$2,530
$4,860
$20,000
$22,530