Question
Buy More is considering a project that has the following cash flows: Year Project Cash Flow 0 ? 1 $3,000 2 4,000 3 3,400 4
Buy More is considering a project that has the following cash flows:
Year
Project Cash Flow
0 ?
1 $3,000
2 4,000
3 3,400
4 1,800
The project has a payback of 2.4 years. The firm's cost of capital is 13 percent. What is the project's net present value (NPV)?
A.$2,247.80
B.$577.68
C.$1,049.80
D.$3,765.91
E.$887.80
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Entrepreneurial Finance
Authors: J . chris leach, Ronald w. melicher
4th edition
538478152, 978-0538478151
