How Much Could NPV Be Affected by a Worst-Case Scenario

question 41

Multiple Choice

How much could NPV be affected by a worst-case scenario of 25% reduction from the $3 million in expected annual cash flows on a 5-year project with 10% cost of capital?

• A) $2,843,090
• B) $3,750,000
• C) $4,578,825
• D) $6,155,274

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