Question
A project will generate the following cash flows. If the required rate of return is 15%,...
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
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