The NewProduct project involves an initial investment of £400,000. The predicted annual cash flow is £150,000 for a four year period, after which the product will be replaced. The required rate of return is 15 per cent. What is the net present value?
A) - £25,750
B) £200,000
C) £35,750
D) £28,250

Question

Quizplus · Accepted Answer

The Answer of The NewProduct project involves an initial investment of £400,000. The predicted annual cash flow is £150,000 for a four year period, after which the product will be replaced. The required rate of return is 15 per cent. What is the net present value?
A) - £25,750
B) £200,000
C) £35,750
D) £28,250

The NewProduct Project Involves an Initial Investment of £400,000