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Beene Distributing is considering a project that will return $240,000 annually at the end of each...

Beene Distributing is considering a project that will return $240,000 annually at the end of each year for the next six years. If Beene demands an annual return of 12% and pays for the project immediately, how much is it willing to pay for the project? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round PVA factor to 4 decimals.)
  

Periodic Cash Flow x p (PV of an Ordinary Annuity) = Present Value
x =
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Answer #1

Calculate present value

Periodic Cash flow * p (PV of an Ordinary Annuity) = Present value
240000 * 4.1114 = 986736
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