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An Environmental Project Requires Investments of $100,000 in Year 1

Question 17

Multiple Choice

An environmental project requires investments of $100,000 in year 1, year 2, and year 3 and yields benefits of $20,000 in year 1; $45,000 in year 2 and $150,000 in year 3. What is the net present value of the project at a discount rate of 4% (rounded to the nearest dollar) ?


A) +$83,698.
B) -$84,242.
C) - $96,272.
D) None of the above.

Correct Answer:

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