A Project Will Cost $1,000 Initially, and Is Expected to Return

question 43

Multiple Choice

A project will cost $1,000 initially, and is expected to return $500 in year 1, $400 in year 2, $300 in year 3, $100 in year 4, and nothing thereafter. What is the project's NPV if the appropriate
Cost of capital is 10%? Round your answer to the nearest dollar.

• A)+$182
• B)+$79
• C)+$1,079
• D)none of the above