# Capital Budgeting: Net Present Value Calculation

An investment will pay $700 at the end of each of the next 4 years, $600 at the end of Year 5, and $500 at the end of Year 6. What is its present value if other investments of equal risk earn 10 percent annually?

a. $1,016.05

b. $2,201.45

c. $1,132.90

d. $3,545.45

e. $2,873.70

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#### Solution Summary

This solution provides a detailed, step-by-step explanation of the given capital budgeting problem.

$2.19