What Is the NPV of a Project That Required a Net

question 49

Multiple Choice

What is the NPV of a project that required a net investment of $500,000 and produced net cash flows of $150,000 per year for 5 years and $110,000 for the next 5 years? Assume the cost of capital is 14%.

• A) $211,080
• B) $392,580
• C) $588,710
• D) $160,920