Question 2 of 10 Fimbrez Corporation has provided the follow

Question 2 (of 10) Fimbrez Corporation has provided the following data concerning an investment project that it is consideri Initial investment $230, 132,000 per year Annual cash flow Expected life of the project Discount rate 12% Click here to view Exhibit 11B-1 and Exhibit 118-2, to determine the appropriate discount factor(s) using tables. The net present value of the project is closest to: (Round discount factor(s) to 3 decimal piaces, intermediate and final answers to the nearest dollar emount) O $230.000 o $(98,000) O s(171016) O $171.016

Solution

Solution:answer is d. $171,016

working:

Net present value=

- initial investment + apvf@12 x annual cash inflow

=230,000 - 3.038 x 132,000

= $171,016