Respass Corporation has provided the following data concerning an investment project that it is considering: Initial investment Annual cash flow Salvage value at the end of the project Expected life of the project Discount rate $ 160,000 $ 54,000 per year $ 11,000 4 years 15% 1 Exhibit 14B-1: Present Value of $1 (portion) Exhibit 143-2: Present Value of an Annuity of $1 (portion) Periods 14% 15% 16% Periods 14% 15% 16% 1 0.877 0.870 0.862 0.877 0.870 0.862 769 0.756 0.743 2 1.647 1626 1.605 3 0.675 0.658 0.641 3 2.322 2.283 2.246 4 0.592 0.572 0.552 2.914 2.855 2.798 5 0.519 0.497 0.476 3.433 3.352 3.274 4 The net present value of the project is closest to: Periods 145 15% 16% Periods 14% 15% 16% 1 0.877 0.870 0.862 1 0.877 0.870 0.862 2 2 1.647 1.626 1.605 0.769 0.756 0.743 0.675 0.658 0.641 3 3 2.322 2.283 2.246 4 4 2.914 2.855 2.798 0.592 0.572 0.552 0.519 0.497 0.476 5 5 3.433 3.352 3.274 The net present value of the project is closest to: Multiple Choice $67,000 $160,516 $516 $(5.776)
