A Project Manager Is Using the Net Present Value Method

question 88

Multiple Choice

A project manager is using the net present value method to make the final decision on which project to undertake.The company has a 10% required rate of return and expects a 4% rate of inflation for the following five years.What is the NPV of a project that has cash flows as shown in the table?

• A)$564.955
• B)$642,586
• C)$431,667
• D)$322,320

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