Question

17.       ABC Inc. is considering a project that has the following cash flows: Year 0 1 2...

17.       ABC Inc. is considering a project that has the following cash flows:

Year

0

1

2

3

4

Cash Flows

-$1,000

$400

$300

?

$200

It takes 2.5 years to recover the initial cash outlays.  The firm’s cost of capital is 15%.  What is the project’s NPV?

____

A)        $83.5

B)        $92.6

C)        $105.5

D)        $120.0

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