Question
3. A project costs $12,800 and is expected to provide a real cash inflow of $10,000 at the end of each of years 1 through
3. A project costs $12,800 and is expected to provide a real cash inflow of $10,000 at the end of each of years 1 through 5. Calculate the net present value of this project if the firm employs a real discount rate of 6.5% after inflation. [EXCEL Formula = PV] [Hint: PV of Cash Flows Initial Investment = Net Present Value] A. $33,522.30 B. $28,756.79 C. $33,294.07 D. $26,311.15
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Personal Finance Building Your Future
Authors: Robert Walker, Kristy Walker
2nd Edition
0077861728, 9780077861728
