The net present value of the investment will be $33,013.5
Given,
rate of interest (r)= 9% or 0.09
n = 4
cash flows are given as :
year 0 = $17000
year 1 = $7000
year 2 = $ 3000
year 4= $ 13000
Taking values from the NPV table for 4 years at 9%, we get them as 0.9174, 0.8417,0.7722,0.7084
Substituting the above values we get:
NPV = cash flow * PVF (9%, 4 years)
NPV = 17000*0.9174 + 7000*0.8417 +3000*0.7722+13000*0.7084
NPV = 15,595.8 + 5891.9 + 2316.6 + 9209.2
NPV = 33,013.5
So, the net present value of the investment will be $33,013.5
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