A project has an initial cash outflow of $22,400 and cash inflows of $13,400 a year for Years 1 and 2 and a final cash inflow in Year 6 of $7,500.The required return is 15.5 percent.What is the net present value?
A)$2,405.66
B)$1,608.14
C)$1,919.08
D)$2,134.85
E)$2,671.02

Question

Quizplus · Accepted Answer

NPV = -$22,400 + $13,400 / 1.155 + $13,400 / 1.155² + $7,500 / 1.155⁶ = $2,405.66

A Project Has an Initial Cash Outflow of $22,400 and Cash