What Is the Net Present Value of a Project That

question 82

Multiple Choice

What is the net present value of a project that has a net investment of $148,000 and net cash flows of $25,000 in the first year, $45,000 in years 2-7, and a negative net cash flow of $27,000 in year 8? Assume the cost of capital is 11%.

• A) $34,302
• B) $74,847
• C) $57,738
• D) -$2,238