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

question 20

Multiple Choice

What is the NPV of a project that costs $100,000 and returns $45,000 annually for three years if the opportunity cost of capital is 14 percent?

• A)$3,397.57
• B)$4,473.44
• C)$16,100.00
• D)$35,000.00 NPV = PV of inflows - required investment
• = $45,000

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