What Is the Net Present Value of a Project That

question 101

Multiple Choice

What is the net present value of a project that requires a net investment of $76,000 and produces net cash flows of $22,000 per year for 7 years? Assume the cost of capital is 15%.

• A) $91,520
• B) $15,520
• C) $78,000
• D) $167,474

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