Question

A project will generate the following cash flows. If the required rate of return is 15%, what is the project’s net present value?

Year	Cash flow
0	–$50,000
1	$15,000
2	$16,000
3	$17,000
4	$18,000
5	$19,000

Select one:

a. $16,790.47

b. $6,057.47

c. $3,460.47

d. $1,487.21

e. –$3,072.47

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Question text

A project will generate the following cash flows. The required rate of return is 15%. If the profitability index is 1.7, what is the initial investment for this project?

Year	Cash flow
1	$15,000
2	$16,000
3	$17,000
4	$18,000
5	$19,000

Select one:

a. $26,217.06

b. $31,460.47

c. $32,974.98

d. $37,752.57

e. $95,297.70

Answer 1