$1897 mibns 000,0062 sw I Y al coles a bl 6) The Kaufmann Group is considering a $364,000 investment with the following net cash flows. Kauffman requires a 12% return on its investments. Annual Net Cash Flows Present Value of $1 at 12% Initial investment 1.0000 Year 1 $ 124,000 0.8929 Year 2 84,000 0.7972 Year 3 144,000 0.7118 Year 4 s istos bas 000,00 254,000 svenistot 008,20 0.6355 by Year 5 74,000 0.5674 The present value of this investment is: A) B) C) D) E) $483,588. $161,576. $119,5

$1897 mibns 000,0062 sw I Y al coles a bl 6) The Kaufmann Group is considering a $364,000 investment with the following net cash flows. Kauffman requires a 12% return on its investments. Annual Net Cash Flows Present Value of $1 at 12% Initial investment 1.0000 Year 1 $ 124,000 0.8929 Year 2 84,000 0.7972 Year 3 144,000 0.7118 Year 4 s istos bas 000,00 254,000 svenistot 008,20 0.6355 by Year 5 74,000 0.5674 The present value of this investment is: A) B) C) D) E) $483,588. $161,576. $119,5

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 23E: Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The...

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