Given the following cash flow for project A: C0 = -3,000, C1 = +500, C2 = +1,500 and C3
= +5,000, calculate the NPV of the project using a 15% discount rate.
A) $5,000
B) $2,352
C) $3,201
D) $1,857

Question

Quizplus · Accepted Answer

The NPV is calculated by discounting each cash flow back to the present value using the formula: NPV = C0 + C1/(1+r)^1 + C2/(1+r)^2 + C3/(1+r)^3. Substituting the given values and a discount rate of 15%, the NPV is approximately $1,857.

Given the Following Cash Flow for Project A: C0 =