A Company Is Considering an Iron Ore Extraction Project Which

question 2

Multiple Choice

A company is considering an iron ore extraction project which requires an initial investment of $500,000 and will yield annual cash flows of $150,000 for 4 years. The company's hurdle rate is 9%. What is the NPV of the project?

• A)positive $14,000
• B)negative $100,000
• C)positive $100,000
• D)negative $14,000

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