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:

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