The Jacobi Project Requires an Initial Cash Outlay of $75,000

question 6

Multiple Choice

The Jacobi Project requires an initial cash outlay of $75,000 and is expected to produce net cash flows of $20,000 at the end of each year of its 5-year life. If the required return on the project is
10%, what is its net present value? Round your answer to the nearest dollar.

• A)$25,000
• B)$62,582
• C)$12,418
• D)none of the above

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