The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $420,000. The Sisyphean 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) $206,265
B) $144,385
C) $515,661
D) $216,578

Question

The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $420,000. The Sisyphean 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 ________.

The appropriate discount rate for this project is 16%.
The net present value (NPV) for this project is closest to ________.
A) $206,265 
B) $144,385 
C) $515,661 
D) $216,578

Quizplus · Accepted Answer

A) 11eaabab_c09c_cc28_b90e_17b03fa12fcd_TB5536_11 11eaabab_c09c_cc29_b90e_a5b018045295_TB5536_11

The Sisyphean Company Is Planning on Investing in a New