If $ 10,000 is invested in a certain business at the start of the year, the investor will receive $ 3 comma 000 at the end of each of the next four years. What is the present value of this business opportunity if the interest rate is 4% per year?

$889.70

Explanation:

The computation of the net present value is shown below:

= Present value of all yearly cash inflows after applying discount factor - initial investment  

where,  

The Initial investment is $10,000

All yearly cash flows would be

= Annual amount received × PVIFA for 4 years at 4%  

= $3,000 × 3.6299

= $10,889.70

Refer to the PVIFA table

So, the net present value is

= $10,889.70 - $10,000

= $889.70

mcdonald's fast-food restaurants have a well-designed training program for all new employees. each new employee is supposed to learn how to perform standardized tasks required to maintain mcdonald's service quality. due to labor shortages in some areas, new employees begin work as soon as they are hired and do not receive any off-the-job training. this nonconformity to standards creates control loss.

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