Stone Inc Is Evaluating a Project with an Initial Cost of of $9,500

question 73

Multiple Choice

Stone Inc. is evaluating a project with an initial cost of $9,500. Cash inflows are expected to be $1,500, $1,500, and $10,000 in the three years over which the project will produce cash flows. If the discount rate is 6%, what is the net present value of the project?

• A) $11,150
• B) $26,930
• C) $8,430
• D) $1,650