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A project has the following cash flows : C0 C1 C2 +6,750 +4,500 -18,000 Calculate the NPV of the project for a discount rate of

A project has the following cash flows :

C0 C1 C2

+6,750 +4,500 -18,000

Calculate the NPV of the project for a discount rate of i) 0% ii)33% iii) 50% and iv) 100%. Which discount rate provides the largest NPV?

a) 0%

b) 33%

c) 50%

d) 100%

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