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A certain project will cost a firm $5,000 today. The project is not expected to produce any cash flows until the second year, at which
A certain project will cost a firm $5,000 today. The project is not expected to produce any cash flows until the second year, at which point it is expected to produce $6,200. No other cash flows are anticipated. If the appropriate cost of capital is15%, what is this project?s NPV? Round your answer to the nearest dollar
A. | +$391 | |
B. | -$1,852 | |
C. | -$312 | |
D. | +$5,836 |
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