Question
A new project has an initial cost of $125,000 and cash flows of $33,300, $78,700, and $69,500 for Years 1 to 3, respectively. What is
A new project has an initial cost of $125,000 and cash flows of $33,300, $78,700, and $69,500 for Years 1 to 3, respectively. What is the net present value (NPV) of this project if the discount rate is 19.3 percent? What is the NPV if the discount rate is 12.7 percent?
Multiple Choice
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$859.11; $15,062.34
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$1,127.10; $17,209.11
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$604.17; $15,062.34
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$859.11; $17,209.11
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$1,127.10; $17,388.09
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Entrepreneurial Finance
Authors: Philip J. Adelman, Alan M. Marks
4th Edition
0132434792, 9780132434799
