What is the total value of the cash flow in the final period

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Point 1: A company is considering a project with a total lifespan of 10 years. It will require an immediate outlay of $38 000 and $38 000 outlays for the next two years. At the end of the project, the company expects to salvage the physical assets for $54 000. The project is estimated to yield net returns of $55 000 in Year 3, $40 000 in Year 6, and $6 000 for each of the following 4 years. The required rate of return is 11.6%.

Question 1: What is the TOTAL value of the cash flow in the final period?

Select one:

a. Final cash flow = $6 000

b. Final cash flow = $54 000

c. Final cash flow = $48 000

d. Final cash flow = $60 000

Reference no: EM132499908

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