Patterson Co

question 22

Multiple Choice

Patterson Co.is considering a project that has the following cash flow and cost of capital (r) data.What is the project's NPV? Note that a project's expected NPV can be negative, in which case it will be rejected. r:
10) 00%
Year
0
1
2
3
Cash flows
−$950
$500
$400
$300

• A) $54.62
• B) $57.49
• C) $60.52
• D) $63.54
• E) $66.72

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