Question
A project will generate annual cash flows of $237,600 for each of the three years starting in the second year, and a cash flow of
A project will generate annual cash flows of $237,600 for each of the three years starting in the second year, and a cash flow of $274,800 the year after that. The initial cost of the project is $744,600. If the required rate of return is 4.3%, what is the net present value of this project?
A.$102,235.36
B.$143,234.43
C.$106,631.48
D.$103,564.78
E.None of the above
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Managerial Accounting
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
2nd edition
9780077493677, 78025516, 77493672, 9780077826482, 978-0078025518
