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Chapter 009 Net Present Value and Other Investment Criteria 59. A project will produce cash inflows of $2,250 a year for five years. The project

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Chapter 009 Net Present Value and Other Investment Criteria 59. A project will produce cash inflows of $2,250 a year for five years. The project initially costs $11,400 to get started. In year six, the project will end and will provide a final cash flow of $1,500. What is the net present value of this project if the required rate of return is 14.4 percent? a. -$1,080.08 b. -$783.72 c. $461.07 D. $919.92 e. $1,207.50 MACSB TOPIC ANALYTIC SECTION: 2.1 TOPIC NET PRESENT VALUE TYPE: PROBLEMS

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