Question
Suppose Lisa's firm is considering a project with the following cash flows and the required return on projects of this risk is 8%. Time 0
Suppose Lisa's firm is considering a project with the following cash flows and the required return on projects of this risk is 8%.
| Time | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash Flow | 100,000 | 30,000 | 45,000 | 55,000 | 30,000 | 10,000 |
Use the NPV decision rule to evaluate this project; should it be accepted or rejected?
| $38,875.53, accept | ||
| $35,995.86, reject | ||
| $138,875.53, accept | ||
| $238,875.53, accept |
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Finance Theory And Practice
Authors: Anne Marie Ward
3rd Edition
1908199482, 978-1908199485
