Calculate the NPV of a 20-Year Project with a Cost

question 338

Multiple Choice

Calculate the NPV of a 20-year project with a cost of $400,000 and annual cash flows of $50,000 in years 1-10 and $25,000 in years 11-20. The company's required rate of return is 10%.

• A) ($33,547)
• B) ($18,547)
• C) $0
• D) $18,547
• E) $33,547

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