The net present value of all cash flows associated with this investment (rounded to the nearest dollar)is:
A) $362,950.
B) $377,950.
C) $382,735.
D) $392,950.

Question

Quizplus · Accepted Answer

Using a financial calculator or Excel, we can determine the net present value of the investment as follows:
- CF0 = -1,800,000 (initial investment)
- CF1 to CF10 = 300,000 per year
- I/Y = 8%
- N = 10

The NPV is calculated to be $382,735. Therefore, the correct choice is C.

The Net Present Value of All Cash Flows Associated with This