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Consider project Theta that requires an immediate investment of $100 that will be depreciated on a straight-line basis down to zero. The project inflows are

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Consider project Theta that requires an immediate investment of $100 that will be depreciated on a straight-line basis down to zero. The project inflows are estimated to be $25 per year for 10 consecutive years (the project's life) starting at the end of year 1. The project outflows are estimated to be $5 per year for 10 consecutive years (the project's life) starting at the end of year 1. Assuming no salvage value, a tax rate of 25%, and a required rate of return of 10%, which of the following comes closest to Project Theta's NPV? NPV = $7.53 NPV = $6.34 NPV = $6.97 NPV = $8.90 NPV = -$0.45

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