Curtis is considering a project with cash inflows of $918, $867, $528, and $310 over the next four years, respectively. The relevant discount rate is 11 percent. What is the net present value of this project if it the start up cost is $2,100?
A) $20.98
B) $46.48
C) $52.14
D) $74.22
E) $80.81

Question

Quizplus · Accepted Answer

The net present value (NPV) is calculated by discounting each cash inflow at the given rate and subtracting the initial investment. The NPV is $20.98 when calculated using the cash inflows and the discount rate of 11%.

Curtis Is Considering a Project with Cash Inflows of $918