Question
A project expects gross annual cash inflow of $1,000 but incurring related annual expenses of $200. The initial investment for the project is $1,700. The
A project expects gross annual cash inflow of $1,000 but incurring related annual expenses of $200. The initial investment for the project is $1,700. The assumed discount rate is 4% and the life of the project is 7 years. What is the net present value (NPV) of the project?
Select one:
a.$3,101.68
b.$4,618.64
c.$7,140
d.$11,525
Explain selected answer.
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown, Sanford J. Leeds
11th Edition
1305262999, 1305262997, 035726164X, 978-1305262997
