What Is the NPV of a Project That Costs $100,000

question 50

Multiple Choice

What is the NPV of a project that costs $100,000, provides $23,000 in cash flows annually for six years, requires a $5,000 increase in net working capital, and depreciates the asset straight line over six years while ignoring the half-year convention? The discount rate is 14%.

• A)-$15,561
• B)-$13,283
• C)$13,283
• D)$15,561 Net Present Value = 23,000

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