A Project Will Produce an Operating Cash flOw of $7,300

question 344

Multiple Choice

A project will produce an operating cash flow of $7,300 a year for three years. The initial cash investment in the project will be $11,601. The net after-tax salvage value is estimated at $3,500 and
Will be received during the last year of the project's life. What is the net present value of the project
If the required rate of return is 11%?

• A) $8,798.29
• B) $9,896.87
• C) $10,072.72
• D) $13,353.41
• E) $20,398.29

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