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You are considering a project that will require an initial cost of $8,000. Revenues for the...

You are considering a project that will require an initial cost of $8,000. Revenues for the 5 year life of the project are expected to be $7,000 each year and costs (including taxes) are expected to be $2,000 each year. If the WACC is 14%, what is the NPV of the project?

-$3,614

$6,145

$7,487

$9,165

$25,165
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Answer #1

Option D - $9,165

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