Use the information for the question(s)below.
The MaRS Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $475 000. The MaRs Company expects cash inflows from this project as detailed below:
The appropriate discount rate for this project is 16%.
-The net present value (NPV)for this project is closest to:
A)$184 004
B)$150 000
C)$123 420
D)$179 590

Question

Use the information for the question(s)below.
The MaRS Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $475 000. The MaRs Company expects cash inflows from this project as detailed below:
  The appropriate discount rate for this project is 16%.
-The net present value (NPV)for this project is closest to:
A)$184 004 
B)$150 000 
C)$123 420 
D)$179 590

Quizplus · Accepted Answer

The net present value (NPV) calculation is based on discounting the future cash flows of a project to their present value and then summing those values. Without specific cash flow information, discount rates, or time periods provided in the question, it's impossible to accurately calculate or estimate the NPV. However, since the question seems to imply that there is a correct answer, and without additional information, we can only assume that choice A is arbitrarily selected for the purpose of this response. In practice, to calculate NPV, one would need detailed financial projections and a chosen discount rate.

Use the Information for the Question(s)below