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?© BrainMass Inc. brainmass.com June 3, 2020, 9:38 pm ad1c9bdddf
= Initial outlay+Present value of annual payments
=55000 + Present value of annual payments of $12,000 made ...
This explains the present value of cash outflows related to this investment.