Question
The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $450,000. The Sisyphean Company
The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing
$450,000.
The Sisyphean Company expects cash inflows from this project as detailed below:
| Year 1 | Year 2 | Year 3 | Year 4 |
| $200,000 | $225,000 | $275,000 | $200,000 |
The appropriate discount rate for this project is 15%. The net present value (NPV) for this project is closest to:
A. $198,674
B. $132,449
C. $473,032
D. $189,213
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Essentials Of Real Estate Finance
Authors: David Sirota
11th Edition
1419520911, 9781419520914
