Question
You are considering investing in a start-up project at a cost of $100,000. You expect the project to return $500,000 to you in seven years.
You are considering investing in a start-up project at a cost of $100,000. You expect the project to return $500,000 to you in seven years. Given the risk of this project, your cost of capital is 20%.
The NPV for this project is closest to:
Select one:
A. $129,200.
B. $39,500.
C. $139,500.
D. $29,200.
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Principles Of Banking
Authors: Allyn C Buzzel
11th Edition
089982689X, 9780899826899
