Question
A project requires an initial investment (or you may say, cash outflow) of $225,000 and is expected to generate the following net cash inflows: Year
A project requires an initial investment (or you may say, cash outflow) of $225,000 and is expected to generate the following net cash inflows:
Year 1: $120,000
Year 2: $130,000
What is Net Present Value (NPV) of the project if the minimum required rate of return (or, you may say firms cost of capital) is 5%?
A) 7573.83
B) 7320.95
C) 8905.42
D) 7199.55
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163
