What Is the NPV of a 6-Year Project That Costs

question 6

Multiple Choice

What is the NPV of a 6-year project that costs $100,000,has annual revenues of $50,000 and costs of $15,000? Assume the investment can be depreciated for tax purposes straight-line over 6 years,the corporate tax rate is 35%,and the discount rate is 14%.

• A) −$15,560.04
• B) $11,151.08
• C) $3,411.14
• D) $14,782.09

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