Calculate the Net Present Value for an Investment Project with the Following

question 27

Multiple Choice

Calculate the net present value for an investment project with the following cash flows using a 12% cost of capital: $$\begin{array} { l l l l l } \text { Year } & 0 & 1 & 2 & 3 \\\text { Net Cash Flow } & - \$ 100,000 & \$ 80,000 & \$ 80,000 & - \$ 30,000\end{array}$$

• A) $56,560
• B) $30,000
• C) $13,840
• D) Cannot be determined with information given

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