What is the net present value of a project that has an initial cash outflow of $12,670 and cash inflows of $2,400 a year for Years 1 and 2 and a final cash inflow in Year 6 of $15,400? The required return is 14.5 percent.
A)$-1,909.10
B)$-608.14
C)$23,430.90
D)$25,134.85
E)$5,671.02

Question

Quizplus · Accepted Answer

NPV = -$12,670 + $2,400/1.145 + $2,400/1.145² + $15,400/1.145⁶ = -$1,909.10

What Is the Net Present Value of a Project That