Question
A firm is investing $9,000 in Project X with a cost of capital of 12%. The project is expected to produce the following cash flows
A firm is investing $9,000 in Project X with a cost of capital of 12%. The project is expected to produce the following cash flows over its three-year life:
Year Expected Cash flow for Project X
1 $4,000
2 $4,000
3 $3,000
13. Calculate the net present value (NPV) for Project X.
A. $8,896
B. $2,000
C. $1,458
D. $(104)
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Financial Statement Analysis
Authors: Andrew P.C.
1st Edition
1520985002, 978-1520985008
