Question
SCENARIO 11-3 Company A is considering a project with the following cash flows: Project Year Cash Flow 0 -$5,000 1 5,000 2 3,000 3 -1,000
SCENARIO 11-3 Company A is considering a project with the following cash flows:
| Project | ||
| Year | Cash Flow | |
| 0 | -$5,000 | |
| 1 | 5,000 | |
| 2 | 3,000 | |
| 3 | -1,000 | |
The project has a WACC of 10%. What is the project's NPV?
| a. | $2,776 | |
| b. | $1,273 | |
| c. | $1,157 | |
| d. | $2,000 | |
| e. | $1,818 |
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Fundamentals Of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
14th Edition
0135175216, 978-0135175217
