A project requires an initial investment of $21,600 and will produce cash inflows of $4,900,$14,200,and $8,700 over the next three years,respectively.What is the project's NPV at a required return of 14 percent?
A)-$287.22
B)-$503.06
C)$6,200.00
D)$21,096.94
E)$42,696.94

Question

Quizplus · Accepted Answer

NPV = -$21,600 + $4,900/1.14 + $14,200/1.14² + $8,700/1.14³ = -$503.06

A Project Requires an Initial Investment of $21,600 and Will