Question
What is the net present value (NPV) of the following project at given cash flows below if the required return is 12%? Year Cash flow
What is the net present value (NPV) of the following project at given cash flows below if the required return is 12%?
| Year | Cash flow |
| 0 | -$100,000 (it is minus!) |
| 1 | $20,000 |
| 2 | $50,000 |
| 3 | $30,000 |
| 4 | $40,000 |
| A. | $4,490.97 | |
| B. | $3,503.28 | |
| C. | $6,838.78 | |
| D. | $5,538.23 | |
| E. | $7,323.23 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Markets And Institutions
Authors: Jeff Madura
8th Edition
0324568215, 978-0324568219
