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What would be the net present value

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Question - Below is a table for the present value of $1 at Compound interest.

Year

6%

10%

12%

1

0.943

0.909

0.893

2

0.890

0.826

0.797

3

0.840

0.751

0.712

4

0.792

0.683

0.636

5

0.747

0.621

0.567

Below is a table for the present value of an annuity of $1 at compound interest.

Year

6%

10%

12%

1

0.943

0.909

0.893

2

1.833

1.736

1.690

3

2.673

2.487

2.402

4

3.465

3.170

3.037

5

4.212

3.791

3.605

Using the tables above, if an investment is made now for $21,002.00 that will generate a cash inflow of $2,520.24 a year for the next 4 years, what would be the net present value (rounded to the nearest dollar) of the investment, (assuming an earnings rate of 12%)?

Select the correct answer.

- $7,654

- $2,520

- $21,002

- $13,348

Reference no: EM131764941

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