Adler Enterprises is considering a project that has the following cash flow and WACC data.What is the project's NPV? $\begin{array}{cccc}
\text { WACC } &10.00 \% \
\text { Year: } & 0 & 1 & 2 & 3 \
\hline \text {Cash flows: } &-\$ 1,000 & \$ 450 & \$ 460 & \$ 470
\end{array}$
A)$142.37
B)$149.49
C)$156.97
D)$164.82

Question

Adler Enterprises is considering a project that has the following cash flow and WACC data.What is the project's NPV? $\begin{array}{cccc}
 \text { WACC } &10.00 \% \
 \text { Year: } & 0 & 1 & 2 & 3 \
\hline  \text {Cash flows: } &-\$ 1,000 & \$ 450 & \$ 460 & \$ 470
\end{array}$
A)$142.37
B)$149.49
C)$156.97
D)$164.82

Quizplus · Accepted Answer

The correct answer is A because the NPV is $142.37. The NPV is calculated as the sum of the present values of the cash flows, discounted at the WACC. The present value of each cash flow is calculated as the cash flow divided by (1 + WACC)^year. The NPV is then calculated as the sum of the present values of the cash flows.

Adler Enterprises Is Considering a Project That Has the Following