A Project Costing $6,200 Initially Should Produce Cash Inflows of $2,860

question 60

Multiple Choice

A project costing $6,200 initially should produce cash inflows of $2,860 a year for three years.After the three years,the project will be shut down and will be sold at the end of Year 4 for an estimated net cash amount of $3,300.What is the net present value of this project if the required rate of return is 11.3 percent?

• A)$2,474.76
• B)$2,903.19
• C)$935.56
• D)$3,011.40
• E)$1,980.02

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