Question

An investment project has the given cash flows:

Year Cash Flow

1 $900

2 1,050

3 1,320

4 1,140   

If the discount rate is 11.00%; what is the present value (PV) of these cash flows?

    A.  
$3,379.14

    B.  
$3,252.29

    C.  
$3,110.98

    D.  
$4,590.65

Answer 1

As per the details given in the information-
Correct Answer is option A

NPV = Pv of inflow - outflow
PV of inflow is calculated on excel by formula-
=PV(rate,nper,pmt,fv)

Year	Cashflow	Pv Of CF
1	900	810.81
2	1050	852.20
3	1320	965.17
4	1140	750.95
PV of cashflow		3379.14

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