Card Bought an Investment That Will Generate the Following Cash

question 70

Multiple Choice

Card bought an investment that will generate the following cash flows over a three-year period. Use Appendix A.
If Ms. Card's marginal tax rate over the three year period is 40% and she uses a 6% discount rate, compute the NPV of the transaction.

• A) $94,129
• B) $84,964
• C) $62,373
• D) None of the above.