Avalon Aviation Products are evaluating a new project.What is the net present value of this project if the discount rate is 14 per cent and the net cash flows are as per the following table?
A)$742.50
B)$801.68
C)$823.92
D)$899.46
E)$901.15

Question

Quizplus · Accepted Answer

The correct answer is A. The net present value of the project is $742.50. This is calculated by taking the sum of the present values of the net cash flows, which is $899.46, and subtracting the initial investment, which is $156.96.

Avalon Aviation Products Are Evaluating a New Project