Chuck is considering investing in a new project with Berry Fruit Products, a small market gardening operation.

Question:

Chuck is considering investing in a new project with Berry Fruit Products, a small market gardening operation. The project will need an initial investment of $200,000 and will generate $500,000 (after-tax)

cash flows for 3 years. If Chuck applies a discount rate of 12%, calculate the NPV for the project for Chuck.

a. −$50,900

b. $50,000

c. $1,000,000

d. $1,200,000

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Ali Khawaja

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