Present value of cash outflows related to the investment


Problem:

The company is deciding whether to invest in a certain capital investment. The investment requires an initial outlay of $55,000 and annual payments of $12,000 made at the end of the year for five years. The company's discount rate is 14%. What is the present value of cash outflows related to this investment?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Present value of cash outflows related to the investment
Reference No:- TGS02035921

Now Priced at $20 (50% Discount)

Recommended (99%)

Rated (4.3/5)