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the net present value of this project

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A project will produce cash inflows of $1,750 a year for four years. The project initially costs $10,600 to get started. In year five, the project will be closed and as a result should produce a cash inflow of $8,500. What is the net present value of this project if the required rate of return is 13.75%?

A. -$5,474.76
B. -$1,011.40
C. -$935.56
D. $1,011.40
E. $5,474.76

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Solution Summary

The net present value of this project is determined.

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