Question
You have been asked to analyze a capital investment proposal. The project's cost is $1,750,000. Cash inflows are projected to be $575,000 in Year 1;
You have been asked to analyze a capital investment proposal. The project's cost is $1,750,000. Cash inflows are projected to be $575,000 in Year 1; $750,000 in Year 2; $900,000 in Year 3; $1,000,000 in Year 4; and $1,250,000 in Year 5. Assume that your firm discounts projects of similar risk at 17%. What is the project's NPV?
A) $2,699,564
B) $101,247
C)$955,061
D) $4,455,060
E) $582,380
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Lessons In Corporate Finance
Authors: Paul Asquith, Lawrence A. Weiss
2nd Edition
1119537835, 978-1119537830
