Mr Wills Invested in a Business That Will Generate $75,000

question 28

Multiple Choice

Mr. Wills invested in a business that will generate $75,000 annual after-tax cash flow in years 0 and 1 and $90,000 annual after-tax cash flow in years 2 and 3. Compute the NPV of these cash flows at a 10% discount rate using Appendix A.

• A) $259,185
• B) $277,348
• C) $290,310
• D) None of these choices are correct.

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