Compute the NPV statistic for Project U given the following cash flows if the appropriate cost of capital is 9 percent. $$\begin{array} { l c c c c c c }
\text { Time } & 0 & 1 & 2 & 3 & 4 & 5 \
\text { Cash Flow } & - \$ 1,000 & \$ 350 & \$ 1,480 & - \$ 520 & \$ 400 & \$ 100
\end{array}$$
A) $201.69
B) $273.82
C) $383.63
D) $397.21

Question

Compute the NPV statistic for Project U given the following cash flows if the appropriate cost of capital is 9 percent. $$\begin{array} { l c c c c c c } 
\text { Time } & 0 & 1 & 2 & 3 & 4 & 5 \
\text { Cash Flow } & - \$ 1,000 & \$ 350 & \$ 1,480 & - \$ 520 & \$ 400 & \$ 100
\end{array}$$
A) $201.69
B) $273.82
C) $383.63
D) $397.21

Quizplus · Accepted Answer

Using a financial calculator or spreadsheet, we can find that the NPV is equal to $383.63. Therefore, the best choice is C.

Compute the NPV Statistic for Project U Given the Following