Question
A project generates the following cash flows; Beginning of years: 1 ($100,000) (contractors fees) 2 ($200,000) (contractors fees) 3 ($200,000) (contractors fees)
A project generates the following cash flows;
Beginning of years: 1 – ($100,000) (contractors’ fees) 2 – ($200,000) (contractors’ fees) 3 – ($200,000) (contractors’ fees) End of Year 3 : $1,000,000 (sales)
Calculate the NPV of the project using a risk discount rate of 20% per year.
A. $500,000
B. $173,148
C. $166,667
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
15th edition
1337671002, 978-1337395250
