Question
A firm is considering an investment project with the following cash flows: Year 0 = -$150,000 (initial costs); Year 1 = $40,000; Year 2 =
A firm is considering an investment project with the following cash flows: Year 0 = -$150,000 (initial costs); Year 1 = $40,000; Year 2 = $90,000; and Year 3 = $30,000; and Year 4 = $60,000. The company has a 10% cost of capital, calculate the NPV for the project.
a) $24,264
b) $37,476
c) $74,264
d) $58,324
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The Complete Personal Finance Handbook
Authors: Teri B Clark
1st Edition
160138047X, 978-1601380470
