What is the NPV for the following project cash flows at a discount rate of 15 percent? CF₀ = ($1,000),CF₁ = $700,CF₂ = $700. A) ($308.70) B) ($138.00) C) $138.00 D) $308.70

Name: What is the NPV for the following project cash flows at a discount rate of 15 percent? CF 0 = ($1,000),CF 1 = $700,CF 2 = $700. A) ($308.70) B) ($138.00) C) $138.00 D) $308.70
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Quizplus · Accepted Answer

The NPV is calculated as: NPV = CF₀ + CF₁/(1+0.15) + CF₂/(1+0.15)² = -1000 + 700/1.15 + 700/(1.15)² = $138.00.

What Is the NPV for the Following Project Cash Flows