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 15% required rate of return and expects a 5% rate of inflation for the following four years. What is the NPV of a project that has cash flows as shown in the table?

• A) $4.955
• B) $42,586
• C) -$23,667
• D) -$122,569

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