Consider a 12-Year Project That Costs $48,000 Today and Will

question 39

Multiple Choice

Consider a 12-year project that costs $48,000 today and will produce after-tax cash flows of $6,000 each year for the first four years, $7,000 each year for the next four years, and $8,000 each year for the last four years.If the cost of capital is 8 %, what is the project's NPV?

• A)-$30,092
• B)$907
• C)$3,230
• D)$21,554

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