The NPV of an Investment Requiring an Initial Outlay of $10,000

question 21

Multiple Choice

The NPV of an investment requiring an initial outlay of $10,000 at a discount rate of 6% which provides end-of-year cash flows of; year 1 - $3,000 (inflow) , year 2 - $11,000 (inflow) , year 3 - $1,500 (outflow) and year 4 - $7,000 (inflow) will be approximately:

• A) $6,163.
• B) $6,905.
• C) $9,424.
• D) $19,500.

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Definitions:

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