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A standard investment project has an initial investment of $100 and offers only one cash flow of $200 at the end of year 4. The
A standard investment project has an initial investment of $100 and offers only one cash flow of $200 at the end of year 4. The project's required rate of return is 12.5% Which of the following comes closest to the net present value (NPV) of this project?
A. | NPV = $88.88 | |
B. | NPV = $44.44 | |
C. | NPV = $24.86 | |
D. | NPV = $22.22 | |
E. | NPV = $11.11 |
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