What Is the NPV for a Project Whose Cost of Capital

question 129

Multiple Choice

What is the NPV for a project whose cost of capital is 15 percent and initial after-tax cost is $5,000,000 and is expected to provide after-tax operating cash inflows of $1,800,000 in year 1, $1,900,000 in year 2, $1,700,000 in year 3, and $1,300,000 in year 4?

• A) $1,700,000
• B) $371,764
• C) -$137,053
• D) -$4,862,947

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Definitions:

Avocados

A nutrient-dense fruit known for its creamy texture and health benefits, including high levels of potassium and healthy fats.

Bananas

A tropical, crescent-shaped, yellow fruit that is soft and sweet when ripe, widely consumed and grown in humid regions around the world.

Aesthetic Importance

The value or significance of something based on its beauty or emotional impact, often related to the arts or nature.

Wildflowers

Wild plants that grow naturally without intentional human planting or cultivation.