Question: 1 market value and its cost. is the difference between an investment's 2. The net present value profile illustrates how the net present value of

1 market value and its cost. is the difference between an investment's 2. The net present value profile illustrates how the net present value of an investment is affected by 3. To create value for its owners net present value must be 4. What is the net present value of project ABC with the following cash flows if the discount rate is 14 percent? Year Cash flow 0 -$63,600 1 18,200 2 34,500 3 35,900 5. Based on the results in #4 is project ABC a good investment and why? 1

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