Net present value of a project
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What is the net present value of a project that requires a net investment of $76,000 and produces net cash flows of $22,000 per year for 7 years? Assuming the cost of capital is 15 percent. (Present value (PV) of inflows less Net Investment (NINV)
The four answers to choose from are the following:
Answer: b. $15,520
n= 7 years
r= 15% =Discount rate
PVIFA (7 ...
The solution calculates net present value of a project.