An analyst predicts that the present value of benefits of a


An analyst predicts that the present value of benefits of a two-year project would be $220,000 and the present value of the scrap value at the end of the project's life is expected to be $18,000. Given a 5% discount rate, he also expects the present value of costs would be $200,000. How much is the present value of net benefits for the project?

  • $15,873
  • $34,467
  • $17,546
  • $38,000

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Macroeconomics: An analyst predicts that the present value of benefits of a
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