What is the net present value of a project with the following cash flows if the required rate of return is 9 percent? Year Cash Flow
$0 - \$ 42,398$
$1 \quad 18,201$
$2 \quad 21,219$
$3 \quad 17,800$
A)-$1,574.41
B)-$1,208.19
C)$5,904.65
D)$6,029.09
E)$6,311.16

Question

Quizplus · Accepted Answer

The net present value (NPV) of a project is the sum of the present values of all the cash flows that the project is expected to generate, discounted back to the present at the required rate of return. In this case, the required rate of return is 9 percent. The NPV of the project is calculated as follows:NPV = -42,398 + 18,201/(1.09) + 21,219/(1.09)^2 + 17,800/(1.09)^3 = $5,904.65Therefore, the correct answer is C) $5,904.65.

What Is the Net Present Value of a Project with the Following