What is the NPV of a project that costs $100,000 and returns $50,000 annually for 3 years if the opportunity cost of capital is 14%?
A) $13,397.57
B) $14,473.44
C) $16,081.60
D) $33,748.58

Name: What is the NPV of a project that costs $100,000 and returns $50,000 annually for 3 years if the opportunity cost of capital is 14%? A) $13,397.57 B) $14,473.44 C) $16,081.60 D) $33,748.58
Brand: Quizplus
Rating: 4.8 (31 reviews)

Question

Quizplus · Accepted Answer

NPV = −$100,000 + $50,000[(1 / 0.14) − 1 / 0.14(1.14)³] = $16,081.60

What Is the NPV of a Project That Costs $100,000