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Following details are provided by VPN Company. Initial investment $5,000,000 Discount rate 15% Yearly cash flows 1 $1,250,000 2 $1,350,000 3 $2,400,000 4 $1,150,000 Refer
Following details are provided by VPN Company.
Initial investment | $5,000,000 |
Discount rate | 15% |
Yearly cash flows | |
1 | $1,250,000 |
2 | $1,350,000 |
3 | $2,400,000 |
4 | $1,150,000 |
Refer to the following table for PV factors:
13% | 14% | 15% | |
1 | 0.885 | 0.877 | 0.87 |
2 | 0.783 | 0.769 | 0.756 |
3 | 0.693 | 0.675 | 0.658 |
4 | 0.613 | 0.592 | 0.572 |
What is the NPV of the project?
A. $590,850 negative
B. $590,000 positive
C. $615,455 positive
D. $654,900 negative
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