If quail company invests $50,000 today, it can expect to receive $10,000 at the end of each year for the next seven years, plus an extra $6,000 at the end of the seventh year. (pv of $1, fv of $1, pva of $1, and fva of $1) (use appropriate factor(s) from the tables provided. round your present value factor to 4 decimals.) what is the net present value of this investment assuming a required 10% return on investments?

Net Present Value = $1,762.95

Explanation:

Equal payments made at the end of each year implies that the cash inflows from year 1 to 7 form an annuity where:

where PMT is the the equal payment cash inflow received at the end of each period  and

= The present value of an annuity factor for n years at i%

The present value of an annuity factor for 7 years at 10% equals

therefore: Net Present value of this investment given a 10% return o investments equals