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A firm with a 9.5 percent cost of capital is considering a project for this years capital budget. The projects expected after-tax cash flows are
A firm with a 9.5 percent cost of capital is considering a project for this years capital budget. The projects expected after-tax cash flows are as follows:
| Year: | 0 | 1 | 2 | 3 | 4 |
| Cash flow: | -$7,000 | $3,200 | $2,700 | $2,900 | $3,400 |
Calculate the projects net present value (NPV).
| a. | $2,509.55 | |
| b. | $2,747.95 | |
| c. | $5,200.00 | |
| d. | $1,486.01 | |
| e. | $4,141.55 |
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