A Project Has the Following Cash Flows: C0 = -100,000;

question 31

Multiple Choice

A project has the following cash flows: C0 = -100,000; C1 = 50,000; C2 = 150,000; C3 =
100,000. If the discount rate changes from 12% to 15%, what is the change in the NPV of the
Project (approximately) ?

• A) 12,750 increase
• B) 12,750 decrease
• C) 122,650 increase
• D) 135,400 decrease

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