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Sorenson Stores is considering a project that has the following cash flows: Year Cash Flow 0 CF0 = ? 1 $2,000 2 3,000 3 3,000
Sorenson Stores is considering a project that has the following cash flows: Year Cash Flow 0 CF0 = ? 1 $2,000 2 3,000 3 3,000 4 1,500 The project has a payback of 2.5 years, and the firm's cost of capital is 12%. What is the project's NPV? a. $577.68 b. $765.91 c. $1,049.80 d. $2,761.32 e. $3,765.91
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