What Is the Net Present Value of a Project That

question 31

Multiple Choice

What is the net present value of a project that has an initial cash outflow of £12,670 and the following cash inflows? The required return is 11.5%.
$\begin{array}{|l|l|}\hline \text { Year } & \text { Cash Inflows } \\\hline 1 & £ 4,375 \\\hline 2 & £ 0 \\\hline 3 & £ 8,750 \\\hline 4 & £ 4,100\\\hline\end{array}$

• A)£218.68
• B)£370.16
• C)£768.20
• D)£1,249.65
• E)£1,371.02

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