A Project Will Produce Cash Inflows of $1,750 a Year

question 11

Multiple Choice

A project will produce cash inflows of $1,750 a year for four years.The project initially costs $10,600 to get started.In year five,the project will be closed and as a result should produce a cash inflow of $8,500.What is the net present value of this project if the required rate of return is 13.75%?

• A)-$5,474.76
• B)-$1,011.40
• C)-$935.56
• D)$1,011.40
• E)$5,474.76

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Definitions:

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